Cocoa Bill risks harming farmers without proper consultation, warns Oppong Nkrumah

Ghana's cocoa industry faces potential disruption if Parliament proceeds hastily with the Cocoa Board Reforms Bill without broad stakeholder consultation, according to Kojo Oppong Nkrumah, Ranking Member on Parliament's Economy and Development Committee. Speaking on JoyNews' PM Express this week, the Ofoase Ayirebi MP emphasised that the proposed legislation carries far-reaching consequences that demand careful deliberation before passage.

The Minority has opposed fast-tracking the bill, citing concerns that inadequate engagement with cocoa farmers and industry players could undermine one of Ghana's most vital economic sectors. Oppong Nkrumah pointed to the fallout from previous government decisions on cocoa pricing as a cautionary tale. "Look at the last time they took a decision at Cabinet to cut cocoa prices by about 30%. It's impacted a lot of cocoa-growing areas across the country. You don't take major decisions like this in a rush," he said.

The pricing mechanism concern

Central to the Minority's objections is the bill's proposed cocoa pricing formula. The legislation originally referenced payment of 70 per cent of Free on Board (FOB) prices to farmers, but discussions have since shifted to an alternative mechanism—a change that has deepened concerns among opposition lawmakers.

Oppong Nkrumah warned that the new system would fundamentally alter how cocoa farmers receive compensation. The current arrangement guarantees a minimum farm-gate price, a mechanism that has historically encouraged farmers to commit to cocoa production annually. Under the proposed reforms, this stability would be lost. "It will put a lot of our cocoa farmers at a disadvantage because what it will do is that it will not be able to do what we have done from times past, provide what we call the minimum guarantee farm gate price, which is what now encourages people to go into cocoa farming for the year," he explained.

The new pricing structure would introduce volatility into an industry already sensitive to global commodity fluctuations. "It's going to be undulating, which we think is not helpful for the peculiar type of industry that we have," Oppong Nkrumah noted, highlighting that Ghana's cocoa sector operates within specific structural constraints that make unstable pricing particularly problematic.

Why it matters for Ghana

Cocoa exports remain among Ghana's largest foreign exchange earners and a primary source of livelihood for millions of rural Ghanaians. The sector directly employs smallholder farmers and supports entire communities across the Ashanti, Bono, Eastern, and Central regions. Any legislative changes to pricing mechanisms or industry governance structures carry immediate implications for farm household incomes and broader rural economic stability.

The controversy also reflects a deeper tension within Parliament over the pace and inclusivity of major economic policy-making. Opposition lawmakers are arguing that complex sectoral reforms require time for proper stakeholder input—a position with implications for how future legislation affecting key industries is handled. If Parliament overrides farmer concerns and the bill produces adverse economic outcomes, confidence in the legislative process itself may suffer.

Oppong Nkrumah has called on Parliament to pause the accelerated passage timeline and instead open formal consultations with cocoa farmer organisations, exporters, cooperative unions, and other industry participants. "So we've asked that they don't rush it through. Let's have an opportunity to engage. Let's bring cocoa farmers in. Let's hear from them," he stated.

The Minority remains committed to continued submissions on the bill before any final parliamentary vote, signalling that debate over the reforms is likely to intensify in coming weeks. Government and parliamentary leadership will face pressure to demonstrate whether legislative processes can genuinely accommodate farmer voices on policy that directly affects their livelihoods.