Omane Acheampong Criticizes Government’s Cocoa Sector Price Reduction

Gospel musician and New Patriotic Party (NPP) supporter Nicholas Omane Acheampong criticized the government’s handling of the cocoa sector on Sunday, describing its explanation for reducing producer prices as unconvincing following the February 12 announcement that lowered farmgate rates.

The musician took issue with the claim that falling international cocoa prices justified lowering the purchasing value for farmers. He stated that the excuse does not hold, arguing that the government cannot simply tell farmers that because prices have fallen somewhere, they must carry the burden.

Omane Acheampong argued that leadership requires cushioning citizens during difficult periods, not transferring pressure onto them. He emphasized that governments should protect vulnerable populations including cocoa farmers from external shocks rather than immediately passing losses through to producers.

Drawing comparisons with the previous NPP administration led by former President Nana Akufo-Addo and former Vice President Dr Mahamudu Bawumia, Omane Acheampong recalled pandemic era interventions. He stated that during COVID-19, free water and free electricity were provided, yet those who implemented the programs were criticized and told they had done nothing.

The musician believes the current government rode into office on rhetoric rather than delivery. He stated that the administration bragged their way to power, adding that Ghanaians are waiting to see the substance behind campaign promises made before the December 2024 elections.

Omane Acheampong maintained that accountability should apply across political lines. He concluded by stating that if government promises better, then officials should show better through concrete actions supporting farmers and citizens facing economic hardship.

The Producer Price Review Committee (PPRC) reduced the farmgate price to 41,392 cedis per tonne on Wednesday, February 12, from 58,000 cedis announced in October 2025, equivalent to 2,587 cedis per 64 kilogram bag. Finance Minister Dr Cassiel Ato Forson explained the adjustment followed world market cocoa prices falling to approximately 4,100 dollars per tonne from an average of 7,200 dollars when the season began in August 2025.

The government stated it would pay farmers 90 percent of the achieved gross Free on Board (FOB) price of 4,200 dollars per tonne for the remainder of the 2025-26 season to cushion them against falling global prices. The percentage paid significantly exceeds the statutory minimum of 70 percent of gross FOB price mandated by existing legislation.

Thousands of farmers endured months without payment as unsold cocoa stocks accumulated at collection centers during the period when Ghana’s farmgate prices exceeded international market levels. Many farmers smuggled beans across borders to Cote d’Ivoire where they received faster payments and higher prices, undermining official supply chains.

Cabinet directed Ghana Cocoa Board (COCOBOD) to immediately pay all outstanding amounts owed to cocoa farmers and approved introduction of a new Cocoa Board Bill to Parliament that will introduce automatic producer price adjustments based on world market trends and exchange rates. The bill will guarantee farmers a minimum of 70 percent of gross FOB price.

The government will replace the 32 year old syndicated loan model and the failed buyer financed model of 2024 with a new system using domestic cocoa bonds for the 2026-27 season. Cabinet also approved conversion of 5.8 billion cedis in legacy debt owed to the Ministry of Finance and Bank of Ghana (BoG) into equity to restore COCOBOD’s balance sheet.

President John Dramani Mahama announced at the African Union (AU) summit in Addis Ababa on Saturday that Ghana will stop using foreign financing to purchase cocoa and instead raise domestic bonds in cedis, while unlocking 400,000 tons of cocoa beans for local processing. He revealed that current financing arrangements require beans to be collateralized and shipped outside the country, preventing allocation to domestic processors.

The price reduction sparked intense debate within Ghana’s political landscape. The NPP Minority in Parliament criticized the decision, with some members calling for increased taxes on mining companies to subsidize cocoa farmers rather than reducing farmgate prices.

Licensed Cocoa Buyers Association of Ghana (LCOBA) endorsed the revised farmgate price as necessary alignment with global market realities. General Secretary Vitus Dzah stated that long term sector survival depends on collective resolve among government, regulators, buyers and farmers to embrace adjustments responding to market dynamics.

Some cocoa farmers expressed willingness to accept lower prices for future deliveries provided government first cleared outstanding arrears for beans already delivered at previously announced rates. Industry analysts noted that Ghana’s fixed price system created vulnerabilities when international market conditions shifted rapidly.

The Akufo-Addo administration implemented several social intervention programs during the COVID-19 pandemic including free electricity for lifeline consumers using zero to 50 kilowatt hours monthly from April through June 2020, with 50 percent relief for other residential and commercial customers. The government also provided free water to all Ghanaians from April through September 2020.

These interventions cost the government billions of cedis but were credited with providing immediate relief during strict lockdown measures that prevented many citizens from earning income. Critics at the time argued that targeted cash transfers would have been more efficient than universal subsidies benefiting even wealthy households.

The NPP government also distributed free face masks, implemented tax reliefs and provided soft loans to businesses affected by pandemic restrictions. However, the interventions failed to prevent the party’s electoral defeat in December 2024 as voters cited broader economic challenges including high inflation, currency depreciation and unemployment.

Omane Acheampong has consistently supported NPP policies and criticized NDC governments throughout his public career. His latest comments reflect ongoing partisan debates about government performance evaluation and appropriate policy responses to economic challenges facing cocoa farmers.