Cocoa Crisis Brewing: Oppong Nkrumah's Dire Warning on New Law Threatening Farmers

Ranking Member on Parliament’s Economy and Development Committee, Kojo Oppong Nkrumah, has strongly urged the Ghanaian Parliament to exercise caution and avoid rushing the passage of the proposed Cocoa Board Reforms Bill. Speaking on JoyNews’ PM Express, the Ofoase Ayirebi MP issued a stern warning regarding the potential for serious, far-reaching consequences for Ghana’s vital cocoa industry if key stakeholders, particularly cocoa farmers, are not adequately consulted.

Mr. Oppong Nkrumah highlighted the Minority's staunch opposition to any attempt to fast-track the consideration of this critical legislation. He emphasized that cocoa remains one of Ghana’s most significant economic sectors, making it imperative that any major policy change affecting it undergoes extensive engagement and scrutiny before being enacted into law. He drew attention to past decisions, such as a Cabinet decision to cut cocoa prices by approximately 30%, which had significantly impacted numerous cocoa-growing communities across the country. This previous experience, he argued, underscored the necessity for Parliament to proceed with extreme caution on such impactful reforms.

A primary concern raised by Mr. Oppong Nkrumah revolves around the pricing formula embedded within the proposed bill. He firmly believes that the new arrangement is "inimical to the interest of the cocoa industry" and would ultimately work against the welfare of cocoa farmers. Initially, the proposal suggested paying farmers 70 percent of Free on Board (FOB) prices. However, Mr. Oppong Nkrumah noted a shift, with "some other mechanism" now being discussed, raising further alarm among the Minority and stakeholders.

The former Information Minister elaborated on how this new system could profoundly disadvantage cocoa farmers. He warned that it would undermine the long-standing practice of providing a minimum guaranteed farm-gate price. This guarantee, he explained, has historically served as a crucial incentive for cocoa production, giving farmers the confidence to invest in their farms knowing the minimum price they will receive for their crop each year. Replacing this stable system with an "undulating" or fluctuating pricing model, he argued, would introduce immense uncertainty, which he deemed "not helpful for the peculiar type of industry that we have."

Consequently, Mr. Oppong Nkrumah insisted that Parliament must suspend efforts to quickly pass the legislation. Instead, he called for broader, direct consultations with cocoa farmers and other relevant stakeholders. "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 urged. He reiterated that discussions on the bill are still active, and the Minority caucus remains committed to making further submissions before Parliament makes any final decision, emphasizing that the matter is "not a done deal yet."