The International Monetary Fund (IMF) has advised the government to adjust the producer price of cocoa to reflect changes in international cocoa prices.

According to the IMF, the downward adjustment had become necessary because the Ghana Cocoa Board (COCOBOD) was grappling with a funding gap of GHS1billion due to the government’s inability to reduce producer prices paid to cocoa farmers at a time global prices of the crop had been falling.

In its seventh and eighth review `documents under the recently concluded the External Credit Facility (ECF) Programme, the IMF explained that the adjustment was needed to save COCOBOD from the expanding financing gap.

The fund said although the government and COCOBOD were taking appropriate measures to provide some temporary relief, “more is needed to strengthen COCOBOD’s financial position.”

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