Cote d'lvoire announces farm gate price of cocoa at Rs 1,000 CNF Franc/kg

Farm gate price is similar to India's minimum support price (MSP)

Cote d'lvoire, the world's largest cocoa producer and exporter, on Saturday announced the farm gate price of 1,000 CNF Franc per kilogram (Rs 133.09 )for the main crop of the 2023-24 marketing year starting October 1.

The cocoa farm gate price, which is similar to India's minimum support price fixed for a dozen commodities, is a rate below which buyers are not allowed to pay.

The farm gate price for cocoa, largely used in manufacturing chocolate, was at 900 CFA Franc per kilogram (Rs 120 per kg). CFA Franc is the currency of Cote d'lvoire.

In India, no farm gate price is fixed for cocoa but usually the market rate of the commodity is higher. India produces only 27,000 tonne cocoa annually but imports about 1 lakh tonne of cocoa products.

Announcing the price, Cote d'lvoire Agriculture and Rural Development Minister Kobenan Kouassi Adjoumani said: " We have fixed the cocoa farm gate price at 1,000 CNF Franc per kg for the main crop of this year. I declare 2023-24 marketing campaign."

After two years, this high rate has been fixed despite not having elections around the corner. The main reason behind it is that global prices of cocoa are at record high.

"We don't fix high rate just around the elections," the agriculture minister said at the 6th edition of Sara 2023 Expo.

Cocoa regulator Le Conseil di Caf-Cacao also announced a new logo. "I am happy. Even if they announce 10,000 CNF Franc per kg still I want more," local farmer Ambroise N'Koh told PTI.

Out of 5 million tonne of global cocoa production, Cote d'lvoire alone produces about 2-2.5 million tonne annually and exports almost the entire quantity including value added products like cocoa butter.

Cote d'lvoire, located in West Africa, harvests cocoa twice a year with first crop picked during October- March, while the second crop in April-September period.

Cocoa is the key driver of the agro-based economy of Cote d'lvoire, which is currently focusing on complying with the European Union regulations on sustainability.