President John Dramani Mahama has described the government’s decision to reduce the producer price of cocoa as a difficult but necessary step to safeguard the country’s economic stability.

The government recently announced a downward review of the cocoa producer price to GH¢41,392 per tonne, equivalent to GH¢2,587 per bag, for the remainder of the 2025/2026 crop season.

Delivering his 2026 State of the Nation Address (SONA) in Parliament, President Mahama explained that the move was aimed at addressing acute liquidity challenges within the cocoa sector.

According to him, maintaining the previous price would have compelled the government to borrow billions, potentially dragging the country back into the economic difficulties it has only recently emerged from.

He emphasised that the decision, though tough, was guided by sound economic judgement and the broader national interest.

“The difference between economic hardship and avoiding the same is the exercise of sound economic judgement. I am determined to take decisions that ensure our collective wellbeing and avoid the sufferings of all our citizens. These are decisions to take but Mr. Speaker, I had to take them,” he said.

The President further assured cocoa farmers that ongoing reforms in the sector would lead to a total transformation, ultimately guaranteeing them fair and competitive prices in the long term.