MALD Urges Revocation of Cocoa and Copra Export Fees, Warning of Reduced Farmer Income and Sector Decline.
The Ministry of Agriculture and Livestock Development (MALD) is calling for the immediate revocation of the newly introduced management fees on cocoa and copra exports imposed under the Coconut and Cocoa Management Fees Regulations 2026.
MALD expresses serious concern over both the process and the potential impact of these fees on the country’s agricultural sector, particularly on smallholder farmers who form the backbone of cocoa and copra production.
The Ministry notes that the regulation was introduced without proper consultation with MALD, the lead government authority responsible for agricultural development.
The Ministry is in the view that any policy decision that directly affects farmers, agricultural productivity, and export performance must involve thorough stakeholder engagement, including the Ministry and the industry players.
The main area of concern on the fee increase is the significant reduction in farmer returns. With current market conditions indicating a copra price of approximately SBD6.00 dollars per kilogram, the application of a SBD3.05 management fee effectively reduces farmer earnings to less than half.
MALD warns that this will discourage production, reduce export volumes, and ultimately impact national revenue.
The Ministry further highlights that exporters are likely to transfer these costs directly to farmers, placing an unfair burden on rural communities that already face economic challenges.
While MALD acknowledges the need for revenue generation and industry support mechanisms, it emphasizes that such measures must be carefully designed to promote growth not hinder it.
Any increase in fees should be justified by clear and tangible benefits to farmers, such as investment in value adding facilities, infrastructure, and market development.
MALD is also concerned about the lack of broader government consultation in the approval of this regulation and urges a more coordinated approach to policymaking moving forward.
In light of these concerns, MALD calls on the Acting Minister for Commerce, Industry, Labour and Immigration to immediately revoke the new fees and conduct further consultations first before making such a decision that has a huge impact on the agriculture export sector.
“Our farmers are the foundation of our agricultural economy. Any decision that affects their livelihoods must be made with careful consideration, proper consultation, and a clear vision for long-term sector development,” the Ministry stated.
MALD remains committed to working collaboratively with all relevant authorities to ensure that policies affecting agriculture are fair, transparent, and aligned with national development goals.
SOURCE: MALD Press Release
