Ghana's Cocoa Conundrum: Farmers Hold Out for Higher Prices Amidst Market Turmoil

Cocoa farmers in Ghana are withholding stock as they anticipate higher prices, causing supply concerns in the global market. This follows Vice President Bawumia's statements about potential price increases. A recent price hike aims to curb smuggling, while debates continue over future adjustments.

Cocoa farmers in Ghana, the world's second-largest producer, are withholding their harvests in anticipation of potential price increases, according to industry insiders. This move could further compress supply to the global cocoa market, which is recovering from prior poor harvests.

Farmers' actions are influenced by statements from Ghana's Vice President Mahamudu Bawumia, who suggested price hikes. While Bawumia is vying for the presidency in the upcoming elections, his remarks have been noted as misinterpreted, leading to a slowdown in cocoa sales.

Despite Ghana's price rise to 48,000 cedis per metric ton, it's still slightly below Ivory Coast's rate. The Ghanaian state cocoa regulator, Cocobod, may increase prices further if the cedi depreciates, although industry experts debate the impact of farmers' current hoarding strategy.

(With inputs from agencies.)