Ghana will increase the guaranteed cocoa price it pays to farmers during the upcoming growing season by 28% to 10,560 cedis ($1,837) per tonne President Nana Akufo-Addo said on Thursday.

The increase for the 2020/21 season, which begins on Oct. 1, is in line with an expected rise in neighbouring Ivory Coast, the world’s top cocoa producer just ahead of Ghana. The two countries account for over 60% of global cocoa bean production.

The price rises are largely due to implementation by the two governments of a price floor of $2,600 per tonne and a Living Income Differential (LID) of $400 per tonne, meant to tackle poverty among farmers.

Ghana paid farmers 8,240 cedis per tonne during the 2019/20 growing season. ($1 = 5.75 cedis)

Credit: Reuters

(Reporting by Christian Akorlie; Writing by Aaron Ross Editing by Bate Felix)