EDITORIAL> Government should listen to MPS Cashewnut law
The passion that has characterised debate on proposed amendments to the Cashewnut Industry Act (Cap,203), which could see proceeds from the crop’s export levy being chanelled to the government’s consolidated fund, provides food for thought.
The chorus of opposition by MPs from regions where the crop is grown is unprecedented. They see the proposed changes as a threat to the 65 per cent of proceeds that are currently channeled to farmers through the Cashewnut Board of Tanzania (CBT).
What is more refreshing is the decision by MPs to cross party lines to fight for people engaged in the production and supply chain of the crop.
That the cashew nut sector has emerged as a leading foreign exchange earner in the agro-sector should not be lost on anyone. The fact that the crop earned the country about Sh770 billion during the year ending March 2017 is testimony to this reality.
The rapid growth of the sector means that the government will continue relying on it for revenues, the same way it has done with dominant sectors of the economy such as mining. But, is using the consolidated fund the best way to go about it?
As we pointed out a few days ago, channelling funds for selected development initiatives to the consolidated fund does not inspire confidence that the monies would be spent as originally intended. As a matter of fact, it screams “misappropriation!”
Only recently did the Parliamentary Budget Committee show that the government failed to remit over Sh200 billion to the Cashewnut Development Fund, as part of the 65 per cent of the export levy for financial years 2015/16 and 2016/17 as required by law.
Therefore, efforts by MPs from cashew-growing areas to protect farmers’ interests should, not only be hailed, but also seen as well-intentioned. Farmers already suffer from too many challenges including getting little to no support for their activities. Let us cut them some slack.
