Ivorian President Alassane Ouattara will raise the official price of cocoa from the current 1,000 CFA francs ($1.65) to 1,500 CFA francs ($2.47) per kilogram on Tuesday, sources in the export companies told the media.
The president had approved a price proposal of 1,100-1,200 CFA francs per kilogram earlier in the day but later changed his mind and asked for an even higher price, the sources added.
The president's decision comes amid a historic spike in cocoa bean prices due to low crop yields in West Africa, where about 70% of the world's cocoa is grown.
The low harvests are caused by the El Niño weather phenomenon, an excess of average sea surface temperature in the Pacific Ocean that affects global climatic conditions, causing higher temperatures and heavy rains in the region.
The International Cocoa Organization cited "unseasonal heavy rains" as the main reason for the deterioration in cocoa supplies late last year, noting that these heavy rains led to the spread of a fungal infection called "black pod disease."
In particular, according to the organization, there has been a shortage of supply from key producers in Côte d'Ivoire and Ghana, which has led to a 28% and 35% drop, respectively, in arrivals at these countries' ports compared to the previous season.