Government to buy up cashew nut crop

TANZANIA’S President John Magufuli said the government could buy up the country’s cashew nut stock after he dissolved the industry regulator in a row over prices.

Last month, Magufuli ordered a 94 percent increase to cashew nut prices at the industry regulator’s auctions, and fired the organization’s head, in moves he said were aimed at safeguarding farmers from unsustainably low prices.

Cashews are the most valuable of the East African nation’s export crops, but falling prices have prompted Tanzanian farmers to halt sales, saying operational costs were higher than what was offered for the produce.

Minister of Agriculture Charles Tizeba and his trade counterpart Charles Mwijage have been dropped from their posts. Japhet Hasunga was named as the new agriculture minister while Joseph Kakunda will be in charge of trade.

The president, who had accused the cashew nut board of failing to manage the industry properly leading to the low prices of the crop, also disbanded the board.

On Saturday, Magufuli visited a military unit and inspected 75 vehicles that will be used by the government to facilitate the purchasing of cashew nuts in the country should private buyers fail to take up the crop at the government prescribed price of 3,000 shillings (US$1.31) per kilo. The government will use the army and the board of mixed crops to purchase all cashew nuts at the price of more than 3,000 shillings, he said.

Opposition leader Zitto Kabwe said that Magufuli should seek parliamentary approval. “The government needs 600 billion shillings to pay farmers. This money requires parliamentary approval,” Kabwe wrote on Twitter.