Government Orders Immediate Payment of Cocoa Arrears by COCOBOD as it Prepares new Regulator Bill
The government has instructed the Ghana Cocoa Board (COCOBOD) to begin immediate payments to cocoa farmers owed for delivered produce, Finance Minister Dr Cassiel Ato Forson has announced.
The directive follows an emergency Cabinet meeting held on Wednesday to confront the worsening challenges in the cocoa sector. Dr Ato Forson disclosed the decision at a press briefing on Wednesday, February 12.
According to the Finance Minister, Cabinet has approved a package of far-reaching reforms aimed at guaranteeing fair remuneration for farmers, restoring financial stability within the cocoa value chain, and safeguarding the long-term sustainability of the industry.
“To provide urgent relief to unpaid cocoa farmers, Cabinet has directed the Ghana Cocoa Board to commence immediate payment of all outstanding arrears owed to affected farmers,” Dr Ato Forson said.
The emergency meeting, held on February 11, 2026, reflects the urgency with which the Mahama administration is responding to the deepening crisis, which has left thousands of cocoa farmers unpaid for several months.
Across cocoa-growing communities, prolonged payment delays have reportedly forced some farmers to cut back on meals, withdraw their children from school, and abandon routine farm maintenance. In some cases, purchasing clerks have allegedly been detained by farmers demanding payment for delivered cocoa.
COCOBOD is currently saddled with about 50,000 metric tonnes of unsold cocoa at the ports, while Licensed Buying Companies (LBCs) are owed approximately GH¢2.04 billion (about $185 million). Some farmers have not received payment since November 2025.
Government attributes the payment challenges to a combination of factors, including the collapse of international financing arrangements, disparities between Ghana’s farmgate prices and declining global cocoa prices, as well as legacy forward sales contracts executed at historically low prices.
As part of the reform agenda, Cabinet has approved plans to introduce a new Cocoa Board Bill in Parliament to institutionalise an automatic producer price adjustment mechanism.
The proposed legislation will align farmgate prices with movements in global cocoa prices, exchange rate dynamics, and other relevant variables, while guaranteeing farmers a minimum of 70 percent of the gross Free on Board (FOB) price.
“Cabinet has therefore resolved to implement these reforms to ensure fair pricing for cocoa farmers, strengthen the financial viability of the sector, and secure the future of Ghana’s cocoa industry,” Dr Ato Forson stated.
