Minister announces increase in cocoa management levy

AGRICULTURE and Livestock Minister John Simon has announced an increase in the cocoa management levy from K40 to K100 per tonne.
Simon said in a newspaper advertisement that the increase in levy would give the cocoa board financial strength to provide services to the two million cocoa farmers.
The decision to increase the levy was approved by the National Executive Council in line with the government’s agenda to boost the agriculture sector and improve the national economy.
“In light of the CPB (cocoa pod borer) that had decimated cocoa crops, the cocoa board had been financially constrained in carrying out its duties,” he said. “The government is confident that with the increase in management levy, the board will be able to deliver services to the two million cocoa farmers.
The current levy of K40 per ton has never been adjusted to accommodate for changes in the CPI (Consumer Price Index) inflation despite the steady increase in prices of goods and cost of doing delivering services.
“With this constant levy, other variables such as the CPI, inflation, devaluation of the kina and fluctuating market prices have greatly reduced the levies collected in real monetary terms.”
The Bank of PNG indicated that the CPI had increased by 91 per cent from 1999 to 2014.
“Input, supplies and cost of carrying out business in cocoa has tripled while the real value of money generated has declined in real terms over the years,” he said.
Simon said the board needed adequate funding to fund its structure and ensure services were delivered to cocoa growers in Chimbu, Jiwaka, Central and Milne Bay.