This is our Director of Policy at ILEE, Dr. Stephen Morgan
The Institute for Liberty and Economic Education (ILEE) has welcomed the recent decision by the Ministry of Finance and the Ghana Cocoa Board (COCOBOD) to adjust the cocoa producer price to GH₵2,587 per bag, describing the move as a difficult but necessary step to safeguard the financial stability of the sector.
The adjustment, announced on February 12,2026, comes amid mounting global market pressures and domestic liquidity constraints affecting Ghana’s cocoa industry.
In a statement, ILEE said the latest price review underscores broader challenges associated with managing cocoa pricing under a highly centralised system.
The institute argued that the development presents an opportunity to implement reforms that would more effectively align world market prices with what farmers receive locally.
Director of Policy at ILEE, Dr Stephen Morgan, noted that while the government’s openness in addressing the current difficulties is commendable, introducing more frequent and market-linked price reviews would help prevent abrupt and disruptive adjustments in the future.
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According to ILEE, such reforms would form part of what it termed a “partnership for prosperity” aimed at supporting government efforts while protecting farmers’ incomes.
The think tank proposed the adoption of a pricing formula that allows for more regular adjustments in response to global trends.
It also recommended expanding the role of Licensed Buying Companies to ease the financial burden on the state, as well as granting farmers greater flexibility in determining how and where they sell their cocoa.
ILEE believes these measures could help reduce challenges such as cross-border smuggling and the conversion of cocoa farmlands into illegal mining sites.
The institute further called for stronger incentives to boost local cocoa processing.
While commending ongoing government initiatives to promote value addition, ILEE encouraged authorities to ease restrictions to enable more small-scale Ghanaian enterprises to participate in cocoa processing.
It said this would help lessen pressure on raw exports while creating additional employment opportunities.
ILEE expressed its readiness to collaborate with COCOBOD and the Ministry of Finance to develop a balanced framework that combines state oversight with market efficiency.
The organisation maintained that closer alignment between domestic cocoa prices and global market realities would help sustain Ghana’s reputation as a leading producer of high-quality cocoa, while improving farmer welfare.
AM
Source:
www.ghanaweb.com
