Ghana will increase the guaranteed purchase price of cocoa trees in the 2024/2025 season by nearly 45 percent, two sources said, to help growers and prevent smuggling of the precious chocolate raw material.

According to the source, the Ghana Cocoa Pricing Committee set a price of 48,000 cedis (Ghana's currency) per tonne, or 3,000 cedis for 64 kilograms of cocoa for the 2024/25 season, which usually starts in mid-September. This means that it should have increased by almost 45 percent.

The decision will be sent to the government, the source said, which is likely to accept it, according to estimates from another source.

The purchase price cannot exceed 48 cedis per tonne so that the Cocobod Board of Trade does not end up making a loss, he explains.

Already in April, the world's second largest cocoa producer raised the purchase price for the rest of the 2023/2024 season. by more than 58 percent, to 33.120 cedis ($2,123,08) per metric ton or 2,070 cedis per 64-kilogram package.

In raising the price mid-season, Ghana followed the example of neighboring Ivory Coast, the world's biggest cocoa producer, which told growers for the mid-2023/2024 season crop it decided to pay 1.500 francs ($2.55) per kilogram, compared to 1.000 francs in the 2022/2023 season.

Ghana and Ivory Coast coordinate cocoa prices to help farmers and protect cultivation.

Last Thursday, the International Cocoa Organization raised its estimate for the supply deficit in the 2023/24 season by 5.2 percent to 462 tonnes, saying the market is heading for the lowest ratio of stocks to consumption in 45 years.