Tanzania: Farmers Hail Govt Move to Keep Off Cashew Buying

By Alawi Masare

Dar es Salaam — Farmers have welcomed the government's decision to stay out of cashew nuts buying in the next season, saying competition attracts better prices of the produce.

Others want it to regulate the business by setting mini-mum prices to protect them. Stakeholders from

the farmer associations were speaking with The Citizen in separate interviews yesterday.

Their comments follow a recent announcement by the deputy minister for Agriculture, Mr Hussein Bashe, that the cashew market will this time be handled by farmers and buyers and the government will play its oversight and facilitative roles without interfering in the business as happened in the previous season.

The next season is set to kick-off in October and farmers are optimistic about the produce trading.

"It's really a great move for us and we hope the market forces will promote competition and increase prices," said Mr Said Mnowoda from the Tunduru Farmers Association.

The government bought over 220,000 tonnes of cashews at Sh3,300 per kilogramme after traders bid below Sh2,000 during the last season.

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"The government was actually not doing business but keeping frustrated farmers afloat. There was a challenge in collecting the cashews and delays in payment but we hope the coming season will be competitive and probably improve prices," added Mr Mnowoda.

The government recently said it owed farmers Sh50 billion but promised to clear it before the start of the new season.

"The government is sup-posed to remain as a regulator and collect taxes but not buying cashew nuts directly. There were huge challenges in the cashew nut trading last season including delays in payment. Imagine, some people have not yet been paid todate. I think the decision not to directly buy cashews is wise and timely," said Mr Abdul Gea from Small-holder Farmers' Network.

Mr Bashe remarked that the government would provide indicative prices and ensure transparency in the bidding process.

"We have been hearing the government decision through the media but it's healthy for the cashew nut farmers. It should now make sure the minimum prices are in place and apply across the cashew growing regions," said Ms Tabu Chande from Ruangwa Agricultural Marketing Cooperative Society (Amcos).