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Zitto calls for immediate measures to end cashew nut row

ACT Wazalendo party leader Zitto Kabwe

What you need to know:

  • The ACT Wazalendo party leader Zitto Kabwe has called for immediate measures from the government and stakeholders to end the cashew nut pricing row that has seen over 5,100 tons of cashew nuts stranded in the hands of farmers after buyers offered low prices in the recent auctions.

Dar es Salaam. ACT Wazalendo party leader Zitto Kabwe has called for immediate measures to end cashew nut price nightmare in the country.

The cashew nut trading saga led to the suspension of auctions and removal of Cashew nut Board of Tanzania (CBT) acting director general Prof Wakuru Magigi.

The government, through Prime Minister Kassim Majaliwa, said it had arrived at the decision in response to what it said was failure of the responsible authorities to supervise the crop trading.

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But, Speaking on Sunday, October 28 Mr Kabwe said on top of falling prices in the world market, the government’s decision to scrap payment of Sh261 billion on export levy to CBT negatively affected the business.

“The decision increased production costs, making it difficult for farmers to accept low prices offered in the market,” he said.

Therefore, he proposed that the government should purchase all cashews and sell them to exporters, introduce price stabilization funds as well as accelerate construction of a cashew processing factory to reduce the country’s reliance on exports.

He said Tandahimba and Newala Cooperative Union (Tanecu), Masasi and Mtwara Cooperative Union (Mamcu) and Ruangwa, Nachingwea and Liwale Cooperative Union (Runali) boycotted selling their produce at Sh2700 because farmers would incur losses.

According to him, Sulphur was, this season, sold at Sh84, 000 per a bag of 50 kilogrammes as compared to CBT projected price of Sh32,000.

“Though price has plunged in the world market from $2,200 to $1,600 per tonne, farmers would incur huge losses if they accepted Sh2,700 price per kilo,” he said.

The government should therefore purchase all cashews at Sh4,000 per kilo and sell them to exporters in order to protect them from incurring huge losses.

“We also reinstate our call to the government to form a price stabilization fund and speed up construction of cashew nut processing industries,” he said.

According to him, the government was today holding talks with cashews buyers in order to find lasting solution for suspended business.

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