The Minority in Parliament is urging the government and COCOBOD to pay cocoa farmers promptly to save the industry from collapsing. The call comes amid allegations of delayed payments, with COCOBOD owing Licensed Buying Companies (LBCs) over GH¢10 billion for cocoa already taken over. This has led to LBCs struggling to pay farmers, threatening the livelihoods of thousands of farmers and the stability of the cocoa sector.
COCOBOD CEO, Dr. Randy Abbey, attributes the payment delays to the collapse of the long-standing syndicated loan agreement, which has crippled cocoa purchases. He assures that the government is working to clear arrears owed to farmers. COCOBOD has begun making payments to LBCs to enable them to clear outstanding arrears, with over GH¢620 million paid in February alone.
However, the Licensed Cocoa Buyers Association (LICOBAG) warns that the sector is on the brink of collapse due to funding constraints, weak sales strategies, and excessive political interference. They propose reforms, including a review of the funding model and emergency financing to support LBCs.
