Cashew Procuring Procedures Amendment for Local Processors for season 2020/2021

Ibrahim .A.S. • October 25, 2020
Tanzania had officially opened the cashew nut season for 2020/2021 on 1st September, 2020 and auction activities had commenced on 9th October,2020. 

Despite Tanzania's gains from International Trade through the valuable crop, it looses an estimate of USD 44 Million which is a result of 90% of the Raw Cashew Nut (RCN) being exported yearly which also means over 356,903 jobs being forgone which would have other wise been offset by substituting the exported raw cashew nut to be processed out of the country with it being processed locally.

This would have add value on the crop, sell it at a much competitive price in the world market and create jobs for people. 

WHAT HAS BEEN DONE AT THE NATIONAL LEVEL ? 

The Country's Policy of "Viwanda Kwanza" which translates to "Factories First" aims to support the local processing of RCN and increase volume of sales in the local and foreign market. 

Through the Cashew Board of Tanzania (CBT) the government has facilitated the establishment of communities of two active Cashew nut local processors association, namely;

(a) Tanzania Association of Cashew Nut Processors, the association aims at medium and large processors and is headed
       by Bahati Sosthenes Mayoma as the Chairman and Mahamoud Sinani as the Vice Chairman.

(b) Small-scale local processors, the processor aims at small scale processors and is comprised of more than 183 farmers group under Ms.Tumpale Magehema as the Chair lady.

Coupled with her organs and in order to increase involvement and contribution of local processors in cashew value addition the following has been done by the government and aimed to stay relevant through out the year.


(a) Permission of local processors to buy RCN direct from AMCOS instead of competing in the auction.


(b) CBT has removed the condition for local processors to put bid security in order to get license.


(c) They have made it flexible for local processors to procure RCN of any amount depending on the financial muscles.


In this regard, The Cashewnut Board of Tanzania aspires all local processors to be African Cashew Alliance (ACA) seal certified. It is therefore requested that local processors visit ACA facilities to inquire on procedures to qualify for African Cashew Alliance (ACA) seal which is internationally recognized and allows local processors to trade internationally without difficulties which will increase amount of RCN processed and competitiveness of the country in the cashew global market.


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