Gov’t aims to settle cocoa farmers’ unpaid balances within 2–3 weeks – Otokunor

A senior government official has expressed optimism that the ongoing payment delays affecting cocoa farmers in Ghana will be resolved within the next two to three weeks as authorities work to clear outstanding debts owed through Licensed Buying Companies (LBCs).

Dr. Peter Boamah Otokunor, Director of Presidential Initiatives in Agriculture and Agribusiness, made this known during an interview with JoyNews journalist Gemma Appiah after visiting several cocoa-producing communities in the Western Region. During the tour, delayed payments to farmers were highlighted as a major concern.

According to Dr. Otokunor, the government expects to clear all outstanding debts owed to cocoa farmers within the next few weeks. Once these arrears are settled, Licensed Buying Companies will be able to rely on their operating margins to purchase cocoa beans at the newly announced price for the remainder of the season.

The cocoa sector has recently faced growing tension due to delays in payments to farmers, which has disrupted purchasing activities in several producing areas.

Dr. Otokunor indicated that the total debt owed to LBCs is estimated at about $750 million, equivalent to roughly GH¢7.5 billion to GH¢8 billion. He added that the government has already released close to GH¢4 billion within the past two weeks following a directive from the President to the Finance Minister to address the situation.

However, difficulties persist within the industry. Reports suggest that by early March 2026, LBCs owed local banks between GH¢7 billion and GH¢8 billion in pre-financing loans, with interest rates reaching nearly 29.8 percent.

These financial pressures have raised fears that part of the funds released by the Ghana Cocoa Board may be used to repay bank loans instead of directly compensating farmers who have already delivered their cocoa beans.

The payment challenges had earlier been acknowledged by Randy Abbey, Chief Executive Officer of COCOBOD, who revealed on February 6 that around 50,000 tonnes of cocoa were still in the possession of farmers because buyers had not stepped forward.

At the time, he explained that the high market price of cocoa made the beans too costly for some international traders to purchase.

The issue has also attracted attention in Parliament, where the Minority caucus has questioned whether the current pace of payments will allow COCOBOD to fully settle its obligations to LBCs. They have also urged the government to ensure transparency in the distribution of cocoa revenues within the sector.

Despite these concerns, Dr. Otokunor maintained that the government is determined to clear all outstanding payments to farmers. He emphasized that resolving the arrears quickly is essential for rebuilding trust in Ghana’s cocoa marketing system and enabling farmers to continue selling their produce for the rest of the season.