Cashewnuts stranded at co-ops

ABOUT 90,000 tonnes of cashew nuts worth 110bn/- are lying idle in the primary cooperative societies' warehouses and the homes of individual farmers because buyers are reluctant to purchase the commodity.

The Cashew nut Board of Tanzania (CBT) Acting Director General, Mr Ayub Mbawa, told the 'Daily News' on Wednesday that farmers were now desperate because only one third of the 67 licensed buyers have  purchased about 70,000 tonnes.

Mr Mbawa noted that the rest of the buyers had not bought even a single tonne, adding that about 160,000 tonnes were produced this season, as compared to 120,000 last season.He said much of the crop is piled up at the primary cooperative societies because farmers often conduct their business through  the warehouse receipt system.

"Farmers are desperate. They sold the crop to cooperatives for 1,200/- per kilo but the problem is no one is interested in buying from cooperatives," he said. He also said the cooperatives are in trouble because they buy from farmers using borrowed money from banks.

Under normal procedures, farmers are paid 70 per cent of the value of their crop by the cooperatives. The rest is paid after auction bids form buyers that are expected to be above 1,200/- per kilo (farmers' selling price).Reports from Tunduru District, Ruvuma Region say that some desperate farmers have decided to sell their produce to smugglers at a throw-away price.

A Tanzania Broadcasting Corporation (TBC) reporter,  Gaston Msigwa, told  the 'Daily News' that farmers had decided to take a different course of action because they needed money badly.When contacted for comment, Minister for Agriculture, Food Security and Cooperatives, Prof Jumanne Maghembe said on Wednesday that the government  was aware of the cashew nut problem and will announce remedial measures soon.

He said he was aware that cashew nut buyers are not in favour of the warehouse voucher system and would rather purchase the crop directly from farmers at a lower price." We'll  not allow our farmers to be exploited by greedy people, we  will make sure they get competitive prices," Maghembe stressed.

President Jakaya Kikwete recently ordered the minister to revoke licences of  traders who deliberately refused to buy crops. Efforts to reach some of the licensed buyers proved futile on Wednesday as they were not reachable. Tanzania exports 80 per cent of its raw cashew nuts to India, Vietnam, Middle East countries and roasted nuts are sold to Europe.

Source: http://dailynews.co.tz/index.php/local-news/2690-cashewnuts-stranded-at-co-ops