Prime Minister Kassim Majaliwa said this yesterday in the House during the impromptu questions to the premier session.
“We are tirelessly seeking for cashew nuts markets, so farmers should not worry…We will address this challenge as we did in coffee and tobacco,” Prime Minister said.
He was responding to a question posed by Mtwara Urban MP (CUF) Maftaha Nachuma who wanted to know the government position over the low prices of cashew nuts despite issuing indicative price.
In his question, Maftaha sought to know if the government had already started to purchase the produce from farmers as it stated recently.
He highlighted that the indicative price posed by the government in cashew nuts is also aimed at bringing price competition of the produce during auctions.
“However, despite issuing the indicative price, the price of the produce was still low, so this is why the government is working to come up with different strategies to push up the price… this include discussing with stakeholders and various nations,” he said.
Late last month, President John Magufuli ordered 94 per cent increase to cashew nut price at the industry regulator’s auctions and fired the organisation’s head in a move he said aimed at safeguarding farmers from unsustainable 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.
President Magufuli said that the minimum price will be set at 3,000/- per kilogramme, up from the cashew nut board of Tanzania’s previous minimum price of 1,550/- per kg.
“There will be no cashew nuts bought below 3,000/-. I just want the price to go up,” President Magufuli said in a televised meeting with buyers. “If you don’t want to buy at 3,000/-, let me know today so that we can even use our army from tomorrow to buy them.”