The government has announced the resume of cashew nuts auctions tomorrow, after being suspended for five days over price disputes between buyers and farmers which led to sacking of the Cashew nuts Board of Tanzania (CBT) director general.
Dar es Salaam. The government yesterday announced that cashew nut auctions will resume tomorrow, a week after being suspended due to price disputes.
On the same day, the government is expected to name the new Cashewnut Board of Tanzania (CBT) director general replacing Prof Wakuru Magigi who was removed from his position last week. Over 5,000 tonnes of cashew nuts could not be auctioned in Tandahimba, Masasi and Nachingwea after farmers boycotted the auctions citing low prices. The auctions had been organised through respective cooperative unions: Tanecu, Mamcu and Runali.
Last Friday Prime Minister Kassim Majaliwa held a meeting in Lindi with Regional Commissioners of Coast, Lindi, Mtwara and Ruvuma regions, chairs of cooperative unions and CBT officials to discuss issues affecting cashew nut trading particularly low prices. Later in the day, the PM’s office issued a statement saying that President John Magufuli had ordered removal of the CBT director general for failure to supervise the cashew nut trading system.
Mr Majaliwa also promised that the fate of the auctions would be known by Tuesday.
During the premier’s meeting with cashew buyers on October 28, President John Magufuli directed buyers to purchase the merchandise at the minimum price of Sh3,000 per kilo, failure of which the government would buy the cashew nuts. He also promised to address various challenges facing buyers in efforts to make cashew nut production sustainable.
Speaking to The Citizen, yesterday the Permanent Secretary in the Ministry of Agriculture Mr Mathew Mtigumwe said the government and CBT were working on some issues in preparations for the auctions to resume. “We will also name a CBT acting director general,” he said in a telephone interview without giving details.
In another development, the Minister for Agriculture Dr Charles Tizeba arrived in Mtwara early yesterday and convened a meeting with regional authorities concerning resumption of the auctions.
The CBT spokesperson, Mr Bryson Mshana, told The Citizen that Dr Tizeba was scheduled to separately meet the CBT management and officials of cashew nut cooperative unions.
“Hopefully, the re-start of the auctions will be officiated by Dr Tizeba himself in Tandahimba,” he said in a telephone interview, adding:
“Tomorrow, he will hold a press conference to officially announce resumption of auctions and decisions made in today’s (yesterday) meetings.”
The minister is also expected to visit cashew nut warehouses before travelling to Tandahimba District.
On tendering, Tandahimba Farmers Association (Tafa) chairman, Mr Faraji Njapuka said bidding applications have been submitted to Mtwara Regional Commissioners and Tandahimba and Newala Corporative Union (Tanecu) offices.
“It is not possible to know the names of companies that have submitted their applications until the auctioning day. On that day, the list of companies, quantity of cashew nuts required and price floated will be known,” he said.
Ruangwa Farmers Association (Rufa) chairperson Ms Tumpole Masehema said farmers expect better prices following the intervention of the government, noting that President Magufuli’s speech represented voices of cashew nut farmers in the country.
“We expect price to exceed Sh3,000 for farmers to at least get a small profit,” he said.
Reports reaching this paper before going to press yesterday said more than 10,000 tonnes will go for auctioning on Friday.
“We have concluded our meeting with minister Tizeba’s and leaders of cooperative unions at the Bank of Tanzania (BoT) offices in Mtwara. All is set for Friday. More than 10,000 tonnes will be auctioned though we are not sure whether we are going to get good prices because traders also want to make super profits,” Tanecu chairman, Shaibu Aifai said.
