The auction which was under the Tandahimba and Newala Cooperative Union (TANECU) saw farmers selling cashewnut at between 3000/- and 3016/- per kilogramme.
Some interviewed farmers were happy with the new price since they had earlier refused to sell their crop at a price of 2717/- per kilogramme.
The recent auction for cashewnut which was organised by TANECU Mkukwe village in Newala District was not successful following misunderstand between farmers and officials from the cooperative union over price issues.
“We have no objection with the price offered by buyers, we thank President John Magufuli for his support to ensure that we benefited from the crop,” said one of the cashew nut farmers, Iyara Mnunduma.
TANECU General Manager Mohamedi Nassoro said there were a total of 11 buyers during the auction. He said the next cashewnut auction will be held in next few days since there are still many cashewnut in stock.
Minister of Agriculture Dr Charles Tizeba pleaded to farmers that they accept the indicative price offered by the government. He said the move is aimed at ensuring all the cashewnut in stock are sold.
Last week, President John Magufuli ordered a 94 per cent increase to cashewnut prices at the industry regulator’s auctions and fired the organisation’s head in moves he said are aimed at safeguarding farmers from unsustainably low prices.
Magufuli said the minimum price per kilogramme of cashewnut should be 3,000/- up from the Cashewnut Board of Tanzania’s previous minimum price of 1,550/- per kg.
Magufuli also said that the industry board’s acting director-general, Wakuru Magigi, has been removed from his post over the price levels set by the board.
Cashewnut exports rose to $ 541.77 million in 2017 from $ 270.6 million in 2016, surpassing all of Tanzania’s cash crops, including coffee and tobacco, data from the National Bureau of Statistics (NBS) shows.
Data from the NBS showed that cashewnut exports reached 331,100 tonnes in 2017, against 169,200 tonnes in 2016.
Tanzania ranks among the world’s top eight cashew nut growers and the 4th in Africa after Nigeria, Côte d’Ivoire and Guinea-Bissau, according to the United Nations’ Food and Agriculture Organisation (FAO).