President Mahama Defends Cocoa Price Reduction as “Difficult but Necessary” to Avoid Economic Backslide
President John Dramani Mahama has described the recent downward review of the cocoa producer price as a tough but essential decision to protect Ghana’s fragile economic recovery and prevent a return to the severe liquidity and borrowing crisis the country faced in previous years.
Delivering his 2026 State of the Nation Address to Parliament today, the President addressed the controversial adjustment — which lowered the producer price from GH¢48,000 to GH¢41,392 per tonne (equivalent to GH¢2,587 per 64 kg bag) for the remainder of the 2025/2026 crop season — as a deliberate act of economic discipline.
“The difference between economic hardship and avoiding the same is the exercise of sound economic judgement,” he stated. “I am determined to take decisions that ensure our collective wellbeing and avoid the sufferings of all our citizens. These are decisions to take but Mr. Speaker, I had to take them.”
President Mahama explained that maintaining the previous higher price would have forced the government to borrow billions of cedis from domestic and international markets, risking renewed fiscal instability, cedi depreciation, and inflation — outcomes the administration has worked hard to reverse since taking office.
He acknowledged the immediate pain felt by cocoa farmers but insisted the move was guided by the broader national interest and long-term sustainability of the sector.
The President sought to reassure the over one million households dependent on cocoa by outlining ongoing reforms aimed at revitalising the industry:
- Strengthening financial management and transparency at COCOBOD
- Addressing legacy debts and liquidity constraints
- Enhancing productivity through improved inputs, extension services, and research
- Intensifying efforts to protect cocoa farms from galamsey encroachment
- Building a more resilient value chain with greater focus on local processing and export diversification
“These reforms will lead to a total transformation of the cocoa sector,” he said, promising that farmers will ultimately benefit from fairer, more competitive, and sustainable pricing in the medium to long term.
The cocoa price decision was framed within the administration’s wider narrative of recovery and discipline. The President cited recent gains — including over one million jobs created in 2025, nearly 950,000 people exiting multidimensional poverty, a current account surplus of $9.1 billion (8.1% of GDP), and significant cedi appreciation — as evidence that tough choices are yielding results.
He reiterated that the government is moving decisively “from planning to action” on flagship initiatives, including the 24-hour economy policy, while maintaining fiscal prudence to safeguard macroeconomic stability.
The address has drawn mixed reactions. While some stakeholders acknowledge the fiscal realities that necessitated the price cut, farmer groups, opposition politicians, and civil society organisations — including the Ghana Catholic Bishops’ Conference and IERPP — have criticised the reduction, warning of potential disengagement from cocoa farming, increased galamsey risks, and long-term damage to rural economies.
The Minority Caucus is expected to respond critically during parliamentary debate, with particular focus on the impact on cocoa-dependent communities and the sustainability of the sector under current pricing and liquidity conditions.
President Mahama’s defence of the decision underscores the administration’s commitment to prioritising long-term national stability over short-term political expediency, even amid widespread farmer discontent. The coming months will test the effectiveness of promised reforms in restoring confidence and viability in Ghana’s cocoa industry.
