ABIDJAN, April 21 (Reuters) – Ivory Coast’s cocoa regulator said it would reimburse exporters for their expenses related to the implementation of a premium meant to combat farmer poverty.
The world’s top producer introduced a $400 per tonne premium this season, known as a living income differential (LID), to increase farmer wages. But the measure hit exporters hard, driving up prices for Ivorian cocoa just as the coronavirus pandemic dented global demand.
The head of Ivory Coast’s Coffee and Cocoa Council (CCC) informed exporters in a note dated Tuesday that the CCC would reimburse them 5 CFA francs ($0.0092) for each kilo from the October-to-March main crop and 4 CFA francs per kilo for the April-to-September mid-crop harvest.
The CCC has said it would devote a total of 30 million euros ($36.1 million) to reimbursing financial losses by exporters during the 2020/21 season.
The CCC has previously tried to cushion the blow to chocolate companies of the current economic situation and implementation of the LID by lowering a separate premium known as the country differential. ($1 = 542.2500 CFA francs) ($1 = 0.8311 euros) (Reporting by Ange Aboa; Editing by Aaron Ross and David Evans)