Cashew stakeholders appeal for govt intervention in controversy over prices

Dar es Salaam/Mtwara. Stakeholders yesterday demanded government intervention in the controversy surrounding prices being offered to cashew nut farmers, who say they are too low.

Tandahimba and Newala Cooperative Union (Tanecu), Masasi and Mtwara Cooperative Union (Mamcu) and Ruangwa, Nachingwea and Liwale Cooperative Union (Runali) failed to auction their cashews over price concern.

Some stakeholders hoped to earn more especially after the minister for Agriculture, Dr Charles Tizeba, uttered during the stakeholders’ meeting at the Bank of Tanzania (BoT) offices in Mtwara Municipality that prices would not be below Sh5,000 per kilo. Surprisingly, Tanecu, which is said to offer top quality cashew was offered a maximum price of Sh2,717 per kilo while Mamcu was given Sh1,717 and Runali Sh2,657.

Sources allege that some Vietnam firms went bankrupt due to sharp decline of cashew prices last season and a lot of cashews are still in the bonded warehouses. “So, this could be one of the reasons for fewer Vietnamese traders taking part in the cashews business in Tanzania this season,” said the source who did not want to be named because he is not authorised to speak.

Tanecu chairman Shaibu Aifai said farmers expected to sell their cashews for over Sh5,000, the price stakeholders were assured by the Agricultural minister Tizeba during their September 2018 meeting.

“The minister is the top government official whose statement has clicked people’s minds. It is difficult to believe anybody coming with low price,” said Mr Katani Katani (CUF), the Tandahimba MP who attended the stakeholders’ meeting. Mr Katani said the government should be realistic and strategise selling the crop at the available prices ranging from Sh2,700 and Sh2,900 per kilo, noting that it was difficult to get the Sh3,500 price. “We should speak the truth, my survey in the internet shows that Vietnam is purchasing one tonne of cashews at between $1,500 and $1,550 which is equivalent to $1.5 per kilogramme,” he said.

“The amount is equivalent to Sh3,375 per kilogramme at an exchange rate of Sh2,250. When 15 per cent export levy, transport charges and other expenses are included, the value for a kilo goes over Sh4,000, which is too expensive for buyers to offer.” Masasi Urban MP Rashid Chuachua (CCM) said the government should speak to buyers and agree on reasonable prices and find a short term measure to address the problem.

“It should construct cashew nut processing factories in order to reduce the amount of raw cashews as the long term measure,” he said.

But, Mtama MP Nape Nnauye cautioned the country to be careful with how it handled the crop. “What is happening has been a reflection of what I observed. Today, I reserve my comments. Let others speak.”

But, the deputy minister for Agriculture, Mr Omary Mgumba, told The Citizen that Tanzanian ambassadors to Vietnam and India have been directed to survey the market in those countries and report their findings.