Govt gives 35 firms until Monday to declare cashews purchasing plans
What you need to know:
- The government has issued four days ultimatum to 35 companies intending to purchase cashew nut this session to declare interest and pronounce the amount they expected to buy in this season.
- Prime Minister Kassim Majaliwa said those who will not comply will be restricted to buy the produce and face deregistration.
Dar es Salaam. The government has issued a four-day ultimatum to cashew nut buyers registered by the Cashewnut Board of Tanzania (CBT) to express their intention in writing and unveil the quantity of the product they intended to purchase in the 2018/19 season.
Prime Minister Kassim Majaliwa issued the statement on Friday, November 09, saying companies that will not comply with the directives in the stipulated time will be barred to participate in the auctions and face deregistration.
“A total of 35 companies have been registered to purchase cashews this season. We agreed during the meeting presided over by President John Magufuli, but most of them haven’t taken part in the auctions something that could be described as a cold boycott,” he said, adding.
“The companies should therefore write to my office starting today (Friday) to Monday 4pm to declare intention and the quantity they are ready to purchase,” he said.
He said companies that will not comply would be barred from buying the produce this season and will face deregistration.
Yesterday, Mr Majaliwa told the parliament that government was talking with potential buyers from foreign countries in its efforts to end cashews trade nightmare.
Yesterday, it was also revealed that the government has re-suspended cashews auctions across the country to pave the way for the talks to yield fruits.
The decision was taken after participation of less than 15 companies in the auctions during which 2,599 tonnes out of over 29,000 tonnes was traded leaving over 26,000 tonnes unpurchased.
This is the second time the government suspends auctions. After the first suspension, President John Magufuli directed buyers to purchase the produce at a minimum price of Sh3,000.
However, buyers have managed to offer a minimum price of Sh3,001 and a maximum of Sh3016, with less tonnes bought than what was in the warehouses.
The first suspension came after farmers boycotted low prices ranging from Sh2,520 to Sh2,717 offered by traders during auctions.
