Licensed Buying Companies (LBCs) in Ghana have raised serious concerns about unpaid cocoa purchase funds they say are owed by the Ghana Cocoa Board (COCOBOD) over the last two seasons, with the total now estimated at about $185 million.
Samuel Adimado, president of the Licensed Cocoa Buyers Association, disclosed the figures during an interview on Joy News’ PM Express programme on Tuesday. He said the prolonged delays in reimbursements are disrupting the cocoa supply chain and creating financial stress for cocoa stakeholders.
According to Mr. Adimado, LBCs are licensed by COCOBOD to purchase cocoa directly from farmers and deliver it to designated takeover centres. However, he explained that under the current operational framework, LBCs often pay farmers out of their own funds and must wait months to be paid back.
He said this long-standing practice, which has lasted about seven years, involves borrowing from banks to finance cocoa purchases. In some recent seasons, the delay has stretched as long as nine months, leaving buyers with heavy liabilities.
Mr. Adimado noted that the payment delays have led to misunderstandings in farming communities, with some farmers mistakenly believing that LBCs are withholding payments after delivering cocoa to COCOBOD. He stressed that the association held a recent press briefing to clarify its position and reaffirm its commitment to cocoa farmers.
He added that LBCs are also facing pressure from banks, saying they now owe lenders more than they owe farmers in outstanding debts. Despite the challenges, the association says it is engaging with COCOBOD and expects the Ministry of Finance to support efforts to resolve the funding issues.
The cocoa sector remains a key pillar of Ghana’s economy. Delays in payment along the value chain, however, threaten the stability of purchasing operations and could affect farmers’ earnings if not addressed.
source:Myjoyonline
