He said the Mtwara based Naliendele Agricultural Research Institute conducted research on other use of cashew apples once the nut has been removed and the findings revealed that wine can be extracted from the apples.
"The government has instructed the research institute to work on the possibility of establishing an industry to produce cashew wine," he said, noting that the move would help farmers in the areas where the crop is grown to benefit further.
The minister was responding to a supplementary question by Ndanda MP Cecil Mwambe (CHADEMA) who wanted to know what the government was doing to ensure cashew nut farmers benefit from other side products from the crop, and not only nuts.
"The government has constantly said that there are more than just the nuts from the cashew, but what is it doing to help farmers benefit from the products," he asked.
Earlier in the main question to the Ministry of Industry and Trade, Muheza MP,Adadi Rajabu (CCM) asked why the government cannot do away with the policy on tea factories which bar farmers from establishing their own processing factories.
"Why can't the government do away with this policy that goes against the policy of industrialization spearheaded by the current the government?" he demanded.
He said through the policy the East Usambara Tea Company Limited (EUTCO) in Muheza has been affected adversely. In response the deputy minister Stella Manyanya noted the company was one of three companies that were established to process raw tea.
She said, however, the company applied for licence for blending and packing but the law requires that it forms a subsidiary company for the purpose.
The aim of the policy on development of industries is to enhance the building of industries and put in place a conducive environment for their growth, she added.