The Chief Executive Officer (CEO) of Ghana Cocoa Board (COCOBOD), Mr. Joseph Boahen Aidoo, has stated that Ghana is the only country that subsidises the price of cocoa fertilizer to farmers.
Appearing before the Parliamentary Select Committee on Public Accounts, to answer some questions on the 2016 Report of the Auditor-General, The Chief Executive Officer indicated that in other countries, cocoa fertilizers are sold in the open market for farmers without any government intervention.
Mr. Boahen Aidoo pointed out that due to the free supply of the cocoa fertilizers, it is easy to smuggle to other countries for sale at lower costs, and that such practices affect other farmers in the agricultural sector.
He explained to the Public Accounts Committee that the challenge of smuggling led to the review of the subsidy policy, and that the government took a decision to sell the cocoa fertilizers at prices of GH¢80.00 and GH¢20.00 respectively.
Mr. Boahen Aidoo further added that the prices of the subsidised cocoa fertilizers represent 53.4 percent of the original price for a granular fertilizer and 80 percent for liquid fertilizers.
Mr. Aidoo Boahen reiterated that smuggling was at a high rate when cocoa fertilizers given to farmers by the government were free.
He informed the Committee that the policy of the government to subsidise cocoa fertilizers and sell them to farmers is to ensure that smuggling to other neighbouring countries is curtailed.
Mr. Boahen Aiddo concluded that the issue of poverty and other factors were pushing some farmers, to smuggle cocoa fertilizers to other neighbouring countries.
Subsidy by the government
In May 15, 2017, the government announced new prices of cocoa fertilizers for cocoa farmers.
In a press statement released by the government through the Ministry of Food and Agriculture, a bag of original granular fertilizer, costing GH¢171.75 was subsidised and sold at GH¢80.
The statement also indicated that the original price of liquid fertilizers sold at GH¢105.00 is subsidised and sold at GH¢20.00, representing 80 percent subsidy in price.
Source: GhanaJustice/S.Ayisi
