Accra, Oct. 10, GNA - Government has announced a floor price for sheanut purchases at GH¢32.00 per bag of 80kgs.

A statement issued in Accra by Mr Samuel Okudzeto Ablakwa, Deputy Minister for Information said Government was also expected to announce a Sheanut Development Board in the coming weeks, ahead of the completion of a new Sheanut Processing Factory in Buipe in the Northern Region.

A price floor is the lowest legal price a commodity can be sold at. Price floors are used by the government to prevent prices from being too low.

It said according to the Ghana Cocoa Board (COCOBOD), the recommended floor price took into consideration “the average cost of production of the pickers and farmers and a margin to enable them make a profit.”

The purchase price takes immediate effect and it was expected that it would prevent the exploitation of sheanut pickers and farmers by marketing agents.

It noted that the floor price also took cognizance of the price of sheanut and its equivalent products on the international market.

According to the statement COCOBOD warned Licensed Buying Companies (LBC) “that pay below the approved floor price for sheanut purchases will be liable to severe sanctions.”

“The fixing of a floor price for sheanut purchases is a further demonstration of government’s commitment to improving the lot of sheanut pickers and farmers to develop a profitable sheanut business and diversify our focus on cash crops,” it added.