Government owes cashew farmers, service providers Sh31.6bn for 2018-2019 season

Dar es Salaam. The government owes cashew farmers and service providers Sh31.6 billion for the product sold during the 2018/19 trading season, Agriculture minister Japhet Hasunga has confirmed.

The minister also said about 224,462 tonnes of cashews worth Sh575.41 billion were sold during the 2019/2020 the season.

Mr Hasunga said the Sh31.699 billion was the amount reported by a team formed to evaluate irregularities during the 2017/18 season.

During the season, the government decided to purchase all cashews following a standoff with private buyers who were accused of unreasonably offering low prices during initial auctions.

Mr Hasunga told The Citizen exclusively that the government owed farmers and service providers Sh20.421 billion and Sh11.278 billion respectively.

“A total of Sh740.668 billion was paid to farmers during the season which is equivalent to 95.9 percent of Sh772.368, which was supposed to be paid,” he said.

He said while farmers deserved payment of Sh722.95 billion, service providers were supposed to receive Sh49.419 billion.

“The ministry has Sh1.423 billion. Sh30.277 billion will be requested from the government to finalize the payments,” he said, declining to go into details.

Mr Hasunga, who doubles as the Vwawa MP, said the government also owes various stakeholders Sh3.277 billion for transportation of cashews from Agricultural Marketing Co-operative Societies (Amcos) to cooperative union warehouses.

He said during the season, Sh11.698 billion packaging materials were used, noting that Sh6.517 billion has been paid to suppliers.

“Bag suppliers have not yet received Sh5.181 billion. The government also owes the Tanzania Ports Authority (TPA) Sh1.413 billion, being handling charges for exported cashews while that warehouse operators have Sh473.1 million unpaid money,” he said.

He said the assessment revealed involvement of some cooperative leaders, banks and individual stakeholders in colluding in swindling the government.

“Disciplinary and legal measures will be taken against everyone whose name will appear in the final assessment report,” he said.

The minister spoke on the 2019/20 cashews trading season. He said the government had paid farmers Sh575.41 billion for 224,462 tonnes of cashews sold.

He said the amount was part of 232,527.55 tonnes collected countrywide with about 8,101 tonnes remaining unsold in various warehouses. He named the unions and tonnes of cashews in brackets as Ruangwa, Nachingwea and Liwale Cooperative Union (Runali) (2100 tonnes) and Coast Region Cooperative Union (Corecu) that has 4,526.7 tonnes in stock.

Others are the Tandahimba and Newala Cooperative union (Tanecu) that has 792 tonnes, LindiMwambao (250 tonnes), Masasi and Mtwara Cooperative Union (Mamcu) has 197 tonnes, Kyela has 138 tonnes and Tanga 117 tonnes.

He said Mtwara farmers topped in the country after collecting Sh401. 369 billion from 122,137.615 tonnes followed by Lindi Region that got Sh195.439 billion from 59,326.872 tonnes. Other regions and the amount paid to farmers are Coast and Dar es Salaam (Sh64.452 billion from 22,323 tonnes), Ruvuma (Sh61.33 billion from 18,585.975 tonnes) and Tanga (Sh359.077 million from 135,622 tonnes).