Kenyan firm to buy 100,000 tonnes of cashew
What you need to know:
Tanzania to earn Sh.418b for export of raw cashew nuts to Kenya out of 240,000 tonnes produced during the last farming season.
Arusha. A Kenyan firm will buy at least 100,000 tonnes of raw cashewnuts from Tanzania.
Following an agreement to the effect signed late yesterday evening the government will earn Sh418 billion.
The raw cashews to be exported is part of 213,000 tonnes recently purchased from the farmers under a coordinated operation by the government.
The minister for Industries and Trade Joseph Kakunda said yesterday's agreement was a relief to the government, which has been striving to get market for its raw cashew nuts.
He added more than 18 cashew processing firms across the world had shown interest to buy raw cashewnuts from Tanzania.
At the end of it all, it was the Thika-based Indo Power Solutions Limited, which signed a deal with the government for the import of 100,000 tonnes.
The firm's director Brian Mutembei said the raw cashews would be processed and re-exported to the world or consumed locally.
"Hauling of the cashews would commence anytime from next week," he told reporters after the signing at the East African Community (EAC) headquarters.
According to the ministry of Agriculture officials, cashew production in the country for 2017/2018 was estimated at 240,000 tonnes.
Until last week some 213,000 tonnes had been purchased and collected from the farmers and Sh416.4 million paid to them by last Monday.
