In a recent development, a group of Members of Parliament (MPs) has urgently appealed to the government to review the current price regime for cashew nuts, citing concerns over its impact on the industry.
Speaking to the media, the spokesperson of the group, who also serves as the MP for Jaman North, Frederick Yaw Ahenkwah contended that cashew farmers are facing financial losses under the current farm gate price of GHS7, citing high inflation and production costs as contributing factors.
According to the MPs, the producer price for cashews has significantly dropped from the original GHS10 to GHS7 this year, adversely affecting the farmers’ ability to sustain production.
“The Tree Crop Development Authority in 2022 set a price for cashews, and they began with GHS10. The following year, they increased it, and now, this is the third year. In the first two years, the farmers saw an appreciable increase in the price. So, we thought that as the years advanced, the government would continue to set a good price for the farmers. But, to our surprise, the price, which was GHS8.50 last year, has been reduced to GHS7 this particular year, and we know that there is inflation in the system.”
“Prices of farm inputs are high; fuel and other things are skyrocketing. So, these factors go into production. They are all factors of production. By the end of the day, if these farmers bear these high prices and are then unable to pay for the costs they have incurred, I think virtually they are running at a loss….So, we are appealing to the government to, as a matter of urgency, try and review the price. At least GHS9 or GHS10 would make them happy with it,” he said.
MP for Jaman North emphasized the need for a price increase to at least GHS9 or GHS10 per unit,
According to them, the farmers have expressed their dissatisfaction with the current pricing structure, hence the urgent need to resolve the issue.
“We need it very important to draw the attention of the government although the price regime has come to stay but we are appealing to the government as a matter of urgency to try and review the price, at least GHS9 OR GHS10 for the farmers they would be happy with it. As we speak to you, since the price came out we have been receiving a lot of calls from our constituents and we cannot sit down unconcerned, it is our mandate to draw the government’s attention to what is happening there.
According to the farmers, the existing price regime, although established, is causing tension and agitation within the industry.
They argue that the government’s attention is crucial at this point, especially considering the recent approval of a loan aimed at boosting the production of cashew and other crops.
The MPs stressed that their constituents have been reaching out, expressing their discontent with the current prices.
“There’s tension there, there’s agitation. Just last week a loan was approved here to boost the production of cashew and other crops. If government has this good intention to expand the production of cashew and the very industry players who will help the industry to expand are treated this way, do you think they will have the energy to continue the production,” they added.
They highlighted the importance of addressing this issue promptly to ensure the sustainability of cashew production.
They added that the tension within the industry poses a threat to the government’s goal of expanding cashew production, as industry players may lose the motivation to contribute to the sector’s growth.
As discussions surrounding the cashew industry continue, farmers await government intervention to review and potentially adjust the pricing structure, aiming for a resolution that satisfies both producers and industry sustainability goals.
The government declared a reduction in cashew prices for the upcoming 2024 crop season, effective from January 2024.
According to the Chief Executive Officer of the Tree Crop Development Authority, Hon. William Agyapong Quaittoo, the new minimum price for a kilogram of cashew will be GHC7, down from the initial price of GHc8.5.
Despite the calculated figure being GHC6.76 per kilo using the current formula, the government has chosen to round it up to GHC7.
The announcement was made during a meeting with cashew farmers and buyers in Kintampo, Bono East region, on Friday, December 16, 2023.
The primary reason cited for the reduction is the decline in the quality of Ghanaian cashew in the international market, causing Ghana to fall from the second position to the third in West Africa. This decline in quality has resulted in a decrease in the price per ton from USD 1,080 to USD 880.
Additionally, the value of the Ghanaian currency plays a role in the downward revision of the cashew price.
However, Hon. Quaittoo mentioned that the announced figure is subject to review after two months if the quality of Ghanaian cashew improves. Steps are being taken, including training farmers and stakeholders and regulating traders in the cashew industry, to enhance quality.
Ghana is a major exporter of cashew in West Africa, expecting to export about 350,000 metric tons of Raw Cashew Nut (RCN) in 2024. Cashew farmers, particularly in the top-producing regions of Bono, Ahafo, Bono East, and Savana, have consistently expressed concerns about losses due to low market prices after harvest.
In recent years, the government has regularly announced minimum cashew prices, with the 2023 crop season’s GHC8.50 being the highest. Farmers, anticipating an increase for the 2024 season, appeared visibly disappointed with the announced GHC7 per kilogram.
Cashew pricing: We demand an increase of a kilogram of cashew to either GHS9 OR GHS10 – Group of MPs. #JoyNews pic.twitter.com/ttDOIDgpl8
— JoyNews (@JoyNewsOnTV) December 19, 2023
