Farmers boycott cashew auctions over ‘low’ prices

Mtwara. Some farmers in Mtwara Region have refused to sell cashew nuts though rotational district auctions, saying prices offered are too low.

Cashew nut prices hit an all-time high of Sh4,500 per kilogramme during the 2017/18 buying season, with farmers pocketing an eye-popping Sh1 trillion.

However, prices have crashed to between Sh1,711 and Sh2,717 during the current buying season. Reports from auctions held in Newala and Nanyumbu districts on Monday and yesterday, respectively, said farmers boycotted the auctions, citing low prices.

On Monday, members of the Tandahimba-Newala Cooperative Union (Tanecu) stayed away from the auction in Newala after they were offered a price of Sh2,717 per kilo.

During yesterday’s auction in Nanyumbu District, farmers rejected the price of Sh1,717 per kilo, which was less than half of the Sh3,800 and Sh3,850 they earned for every kilo sold last season.

The auction held by the Masasi-Mtwara Cooperative Union (Mamcu), which serves farmers in Mtwara, Masasi and Nanyumbu districts, was also boycotted after prices ranging from Sh2,000 to Sh2,500 were offered.

Cashewnut Board of Tanzania (CBT) director general Wakuru Magigi blamed a thriving black market for the boycott. “There are some people who buy cashew nuts through unofficial channels...these are the ones who are inciting farmers to boycott auctions,” he said.

But Mtwara Regional Commissioner Gelasius Byakanwa said farmers had the right to refuse to sell their cashew nuts at prices quoted by buyers.

CBT information officer Bryson Mshana told The Citizen yesterday that a total of 15 dealers have been approved to buy cashew nuts at indicative prices ranging from Sh1,711 to Sh2,717.

“Fifteen companies attended today’s auction in Nanyumbu district, but farmers were not satisfied with the quoted prices, and said they would rather wait for the next auction on November 5,” he said.

Mr Mshana added that despite auctions being marred by boycotts on Monday and yesterday, the Runali Cooperative Union – which serves farmers in Ruangwa, Nachingwea na Liwale districts – would hold its auction today as scheduled.

Tanzania is the third biggest cashew nut producer in Africa after Nigeria and the Ivory Coast. It ranks eighth globally in the production of the cash crop.

Mtwara and Lindi regions account for 90 per cent of cashew nuts produced in Tanzania. The crop is also grown in Dar es Salaam, Mbeya, Morogoro, Coast, Ruvuma and Tanga regions.