GAWU urges Government to raise cocoa farmgate prices to discourage smuggling

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The General Agricultural Workers’ Union of Ghana (GAWU) has urged the government to increase the farmgate price of cocoa beans to enhance Ghana’s competitiveness with other cocoa-producing nations.

This call comes after the anti-cocoa smuggling taskforce of the Ghana Cocoa Board, in collaboration with national security operatives, recently arrested a driver and his mate for attempting to smuggle 100 bags of cocoa beans in Old Akrade, located in the Asuogyaman District.

In an interview with Citi News, GAWU’s National Chairman, Michael Amoo-Gyasi, emphasized the need to stabilize the Cedi and improve cocoa prices as crucial steps in combating cocoa smuggling.

“This smuggling, because of price variation across the border, I mean the price offered in the neighbouring countries, such as Togo and La Côte d’Ivoire, is far above us. A 50kg bag of cocoa beans costs about GH¢8,000, whilst here in Ghana it is about GH¢3,000.

“So that price variation of about GH¢5,000 incentivises the smugglers to do so because they will reap a lot of differences in the price variation.

“So if the government can do that, unless it increases the prices, at least at the farmgate level, to a bit closer to the prices being offered by our neighbouring countries, which will disincentivise the smugglers from sending it there because if they will not gain much from the smuggling if they take out their transport and logistical charges.”