Ghana has increased the price it pays to cocoa farmers by more than 60, a move that is likely to put pressure on rival producers like Ivory Coast and could push global cocoa costs even higher.
Finance Minister Cassiel Ato Forson announced on Monday that the new producer price will be 5,040 per tonne, up from the previous rate of 3,100.
This substantial increase is a fulfilment of a campaign promise by President John Mahama, who pledged to ensure farmers receive at least 70 of the Free-On-Board FOB value of cocoa.
Ghana, the worlds second-largest cocoa producer, typically sets its prices before Ivory Coast, the largest producer, which currently pays its farmers around 3,900 per tonne.
The governments decision is aimed at rewarding farmers and keeping them in the cocoa sector, a key part of Ghanas economy.