Ghana Cocoa Board releases funds to licensed buying companies

The Ghana Cocoa Board (COCOBOD) says it has released funds to qualified Licensed Buying Companies (LBC) to purchase cocoa for the 2016/2017 cocoa season.

A statement by COCOBOD, and copied to the Ghana News Agency said the seed funds were released to the LBCs for cocoa purchases on revolving basis.

This means that the LBCs are given specific amount based on their bank guarantees, and that it is only after they have purchased and delivered quality cocoa equivalent to the amount released that additional funds are disbursed for cocoa purchases.

According to COCOBOD the rumour being speculated within the cocoa fraternity, especially among the farmers, that funds for cocoa purchase are unavailable was false.

The company said in September COCOBOD secured $1.8 billion loan for cocoa purchase for the 2016/2017 season.

It said the producer price announced by Government on October 1 for the 2016/2017 crop season still stood at GH¢475.00 per bag.

The amount, which includes bonus of GH¢5.00 per bag, represents 77.45 per cent of the net Free on Board (FOB).

Farmers are advised to insist at the point of sale that they are paid GH¢475.00 per bag of 64kg gross weight.

“Cocoa Board is committed to advancing the case of farmers by ensuring that they receive quick payment for their produce, and we will continue to implement strategic measures to make cocoa farming a profitable venture and improve livelihood of all farmers,” it added.

Source: GNA