Beginning this crop year, the government will distribute free cocoa inputs to farmers across the country as part of renewed efforts to boost productivity and revamp the sector. The input support package includes free fertilisers (both liquid and granular), insecticides, spraying machines, fungicides, and flower inducers, all at no cost to the farmer.
The initiative was announced in a press release from the Ministry of Finance, signed by Minister Dr. Cassiel Ato Forson, who chairs the Producer Price Review Committee (PPRC). The government says this support is aimed at helping farmers increase yields, reduce costs, and ultimately improve incomes.
Producer Price Increased by 62.58% in Dollar Terms
According to the release, the producer price of cocoa has been increased from US$3,100 to US$5,040 per tonne, effective Thursday, August 7, 2025. This represents a 62.58% jump in dollar terms and reflects 70% of the gross Free-On-Board (FOB) value of US$7,200 per tonne, in line with President John Mahama’s pledge to restore cocoa farmers’ share of international market prices.
However, although the dollar value of the producer price rose sharply, the cedi equivalent moved only slightly, from GHS49,600 per tonne (GHS3,100 per bag) to GHS51,660 per tonne (GHS3,228.75 per bag). That’s just about a 4.15% increase in cedi terms, due mainly to the strong performance of the Ghana cedi.
Strong Cedi Dampens Local Price Gains
The government acknowledged that the appreciation of the cedi, while beneficial in many respects, also moderated the local currency gains for cocoa farmers.
Since the second quarter of 2025, the government has maintained the producer price at GHS49,600 per tonne, even as the cedi gained value. By doing so, it effectively shielded farmers from income losses due to exchange rate fluctuations.
Dr. Forson disclosed that this intervention subsidised farmers by GHS1,114 per bag, temporarily raising their share of the FOB price to over 99%, a significant jump from the 63.9% share they received under the previous administration in the 2024/25 season.
The Ministry urged farmers to use these inputs strictly for their intended purpose of improving productivity and raising incomes.
