Unsold Cocoa Crisis: Ivory Coast's Market Dilemma

Ivory Coast is facing a significant unsold cocoa crisis, with 200,000 metric tons potentially remaining by end-March. The surplus emerged from high farmer prices set above global rates, causing traders to halt purchases. The government's pledge to buy unsold stock aims to alleviate the issue.

Ivory Coast, grappling with a surplus of unsold cocoa, may see around 200,000 metric tons remaining by the end of March if there is no reduction in state-regulated farmer prices, industry experts warn. The country could ease the problem by aligning prices with global markets.

Both Ivory Coast and Ghana, which collectively account for about half of the world's cocoa production, face a mounting crisis. Unsold stocks have amassed inland and at ports due to high farmer prices set last October, exceeding current global prices, causing traders to face potential losses.

Recently, international traders halted purchases from Ivory Coast's main crop. Although, the nation managed to negotiate sales for its mid-crop with international buyers. However, the government may need to purchase significantly more than its pledged 100,000 tons to mitigate the impact on its cocoa sector.

(With inputs from agencies.)