(Ecofin Agency) - Reversing last week’s decision, the Ivorian Cocoa and Coffee Council (CCC) said cocoa contracts will not be re-sold or cancelled in the 2016-2017 season.

Indeed, last week Ivorian authorities gave cocoa exporters six days to provide a documented proof of their export contracts. The government even threatened to resell contracts of those who would fail to submit the required documents. According to an official from the Ministry of Finance, between 200,000 and 250,000 tons of cocoa were concerned.

Djibril Fadiga, CCC’s deputy director and sales director, said the measure would finally not be implemented since the system was not at risk and added that there would be no impact on prices guaranteed to farmers for the 2016-2017 which is to start in October.

According to some exporters, the measure was taken after the CCC found out that some local operators purchased contracts for the 2016-2017 season without first agreeing on prices with buyers. And due to the global slump in global prices of cocoa, these exporters are no more able to fulfill their contracts. After it was announced that the contracts would be cancelled, global cocoa prices decreased, as many traders moved to re-purchase what should have been re-sold.

Reuters recalls that Cote d’Ivoire sells 70-80% of its projected output in advance, in order to guarantee famers a stable price. For the coming season, the nation has sold around 1.1 million metric tons of cocoa in advance.

Cote d’Ivoire which produces about 40% of world’s cocoa output produced at the end of the 2015-2016 season 1.73 million Mt of cocoa. The nation however does not expect a similar result this season.

Aaron Akinocho