Ranking Member of Parliament’s Economy and Development Committee, Kojo Oppong Nkrumah, has called on Parliament to suspend efforts to fast-track the Cocoa Board Reforms Bill, warning that the proposed legislation could have significant consequences for Ghana’s cocoa industry if passed without broad stakeholder consultation.
Speaking on JoyNews’ PM Express on Tuesday, the Ofoase Ayirebi MP said the Minority opposed attempts to expedite the bill because of its potential impact on cocoa farmers and the wider economy.
According to him, cocoa remains a pillar of Ghana’s economy, and any major reforms affecting the sector should be subjected to extensive consultation before they are enacted.
Mr Oppong Nkrumah argued that previous policy decisions on cocoa pricing had already placed pressure on cocoa-growing communities, making it essential for Parliament to proceed with caution.
“Look at the last time they took a decision at Cabinet to cut cocoa prices by about 30%. It’s impacted a lot of cocoa-growing areas across the country. You don’t take major decisions like this in a rush,” he said.
He also expressed concerns about the pricing formula proposed under the bill, describing it as potentially harmful to the interests of cocoa farmers.
“The formula they want to use now for cocoa pricing, we think, is inimical to the interest of the cocoa industry,” he stated.
Mr Oppong Nkrumah noted that while the proposal initially sought to guarantee farmers 70 per cent of the Free on Board (FOB) price, the government was now proposing a different pricing mechanism, raising further concerns.
“They want to say that they are going to pay 70 per cent. Well, initially they said FOB prices. Now they are coming up with some other mechanism for it,” he said.
He warned that the proposed arrangement could undermine the minimum guaranteed farm-gate price, which he described as a critical incentive for cocoa production.
“It will put a lot of our cocoa farmers at a disadvantage because what it will do is that it will not be able to do what we have done from times past, provide what we call the minimum guaranteed farm-gate price, which is what encourages people to go into cocoa farming because they know the price that is guaranteed for the season,” he explained.
He added that introducing a pricing system that fluctuates throughout the season would be unsuitable for Ghana’s cocoa industry.
“It’s going to be undulating, which we think is not helpful for the peculiar type of industry that we have,” he said.
The former Information Minister urged Parliament to slow the legislative process and engage cocoa farmers and other stakeholders before making a final decision on the bill.
“So we’ve asked that they don’t rush it through. Let’s have an opportunity to engage. Let’s bring cocoa farmers in. Let’s hear from them. Let’s have their input into the law that you want us to pass,” he stated.
Mr Oppong Nkrumah maintained that discussions on the proposed legislation were still ongoing and indicated that the Minority would continue to present its views before Parliament concludes consideration of the bill.
“So again, on that one, it’s not a done deal yet. We will be making a lot more submissions on it,” he added.
