Farmers urged to sell cashew nuts

Wednesday, 10 November 2010 23:21

The Citizen Correspondent

Mtwara. The Tandahimba and Newala Cooperative Union (TANECU) have made a call to cashew farmers in the area to sell their crops during this time, as many are said to store waiting for good price.

The TANECU chairman, Yusuf Nanila, told The Citizen in an interview that most of farmers have not yet brought their cashewnuts to the primary cooperative societies for selling.



He said the union estimated to buy 40,000 tonnes of cashewnut during this season, but by the moment only 14,000 tones have been bought by primary cooperative societies, while 36,000 tones are still on the hand of farmers.

“Last season there was a problem where by some farmer’s cashew was sold at low price, those were mainly sold at early time of buying season….now farmers are reluctant to sell their crops fearing for low price” said Mr. Nanila.

He analyzed that, in last buying season price for cashewnuts in the biding area was dropped especially to those brought at early of the season, the situation caused some farmers to receive little money during third installment, while those who sold late, they got a lot of money.



“They think the situation occurred last season likely to occur this time, that’s why they don’t sell their crops…I would like to call them to sell their crops this time as the price is high in the bid,” he noted.

He said since the opening of the season the biding price of cashewnuts is high but hopping to droop after a while, as buyers buy enough cargo for their demand.

“Now the price is good but farmers don’t want to sell their cashewnuts, my fear is that, they will sell their crops as price in the bidding warehouse have collapsed,” he commented.



Cashewnuts are bought under the warehouse receipt system, where by farmers are paid 70, percent of the price as they sell their crops to primary cooperative society and 30 percent are paid after cashewnuts sold by bidding process at warehouse.

The indicative price have raised from 710 last season to 800 this season as the payments stands on installments, first, second and sometimes third installment if the business goes in profit.