The Maiden Monthly Minimum Producer Price For Oil Palm Fruits and Raw Rubber Announced in Sekondi

by STMA / January 3rd, 2023 /
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The maiden monthly minimum producer price for Oil Palm Fresh Fruits Bunch (FFB) and Raw Rubber (Cum-lump) has been announced at a ceremony in Sekondi by the Minister for Food and Agriculture, Hon. Dr. Owusu Afriyie Akoto, on Tuesday, January 3, 2023. The maiden minimum producer price set by the Tree Crops Development Authority (TCDA) for FFB per tonne for the month of January 2023 is Ghc1,252.92 whilst that of Raw Rubber Cup-lumps for the same period is Ghc4.9167 per kilogram.

In a speech read on his behalf by his deputy, Hon. Yaw Frimpong Addo, the minister for Food and Agriculture noted that the model for calculating the minimum producer price for both oil palm and rubber were developed with support from all the stakeholders in the industry. The minister said FFB is based on the parameters of average international market prices of Crude Palm Oil (CPO) and Crude Palm Kernel Oil (CPKO), Cedi to Dollar exchange rate, miller margin, average oil extraction rate, TCDA levy among others. The period used in the calculations is between 26th of the previous month and 25th of current month or the next trading day if the day falls on a holiday or a weekend. Hon. Afriyie Akoto mentioned that from 26th November to 25th December, 2022, the variable parameters of the pricing formula were average CPO/ton ($1,021.75), Average PKO/ton (1,004.25) and average Interbank Exchange ($1.000 to GH¢10.1467).

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Speaking on the mechanism for pricing Rubber Cup-lumps, the minister stated that, the Average International Price of Technically Specified Rubber (TSR) was sourced from the Singapore Commodity Market (SICOM) from the First to the Last Trading Day of the same month. He added that the average BoG’s daily Interbank Exchange Rate is also aggregated from the first working day to the last working day of the month and the sum average for the month is used in the pricing formula. According to the Minister, the FOB price to the farmer is 63% and the standard Dry Rubber Content (DRC) is fixed at 58%, which provided TCDA with a levy of 0.03% to support the developmental activities of the sector. The average SICOM price for 1st – 30th December, 2022 was $1.3413 per kilo and the average BoG Interbank Exchange Rate for the same period was $1.0000 to GH¢10.0347.

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The minister also stated that TCDA has since its inauguration on September 29, 2020 has supplied to farmers over three million free elite seedlings of coconut, oil palm, rubber, mango, shea and cashew. He further noted that the Authority has also developed a 5-year Strategic Plan (2022-2027) and the pricing mechanisms for cashew, oil palm and rubber. “The objective of the pricing mechanisms is to incentivize producers to sustainably increase production” the minister said. In his welcome remarks, the Mayor of Sekondi-Takoradi, Hon. Abdul Mumin Issah noted that, there is wealth in farming hence, urged all farmers to hold dear to their farms and their farming skills which is their profession. He thanked the President for his vision to set up the Tree Crops Development Authority to regulate the production and pricing of oil palm, rubber, shea, coconut, cashew and mango. He advised the farmers not to allow illegal miners to influence them to sell-off their lands but rather report them to the security agencies for their arrest.

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Some of the farmers at the function commended the government for the initiative and urged the Minister to ensure that the operations of the Authority are devoid of any political interference. They also urged the TCDA to in future consider setting upper limit for buying the various crops due to the increasing pricing-war in the market. The farmers also implored the Authority to work out an educational scholarship scheme for their children as Cocoa Board has it for cocoa farmers.


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