Thus, Ghanaian cocoa farmers are expected to earn GHc205 per bag of 64 kilogram of the produce. The prices take effect from October 14, 2011, the official opening of the season.

Ghana expects a good yield this year and the forecast by the sector regulator, the Ghana Cocoa Board (COCOBOD), projects between 850,000 to 900,000 metric tonnes this season.

Finance and Economic Planning Minister, Dr Kwabena Duffuor, who announced the price in Accra, said Government had taken the decision to increase producer prices to emphasize the importance of the non-oil sector, especially agriculture as the backbone of the economy, even though world market prices for cocoa beans had dipped some 10.8 percent lower than the price for the same period in the previous season.

He said government had sacrificed part of its share of export tax in order to enhance the producer prices, adding that other interventions were in the offing to better the lot of producers.

Other stakeholders in the industry are to benefit from marginal increase in rates and fees. These include buyers' margin, hauliers' rate, warehousing and internal market cost as well as fees for disinfestations, grading and sealing and scale inspection.

Dr Duffour reiterated governments resolve to continuously support cocoa producers through the various interventions aimed at boosting the country's yield significantly.

He said government was also committed to continuing with the replanting and rehabilitation of cocoa and coffee farms, provision of certified planting materials that were early and high yielding, and would make contributions to the Cocoa Stabilization Fund, as well as provide scholarships for the wards of cocoa farmers.

The Minister said that given the record braking output exceeding the one million tonnes production level originally earmarked for 2012, the COCOBOD had been directed to work out bonuses for cocoa farmers on the 2010/2011 main cocoa crop.

Global estimates for the 2011/12 cocoa demand forecast an expected rise of 3.847 million tonnes, from 3.745 million tonnes the previous year.

Ghana, the second biggest cocoa producer shored up its production as it moved to fill the gap created by Ivory Coast's inability to export because of its political violence.

GNA