Mozambique: Cashew industry calls for ban on raw exports
25 Nov. 2016 MOZCAJU (File photo)
Industries in the cashew sector in Nampula are demanding the revision of the legislation related to the sector as a way to ensure some protection for the industry and guarantee the supply of nuts to processing units.
Year-round operation of factories would ensure that the industry can earn taxable income, as well as guaranteeing jobs that are the basis for improving the living conditions of the population.
Yunus Mahomed, president of the Cashew Industry Association (AICAJU), said recently that it was vital to stop the export of raw cashew nuts, which threatened to paralyse factories for lack of raw materials.
According to the Noticias report, buyers from India, Pakistan and Bangladesh are visiting Nampula at harvest time to buy product directly from the producer. This creates imbalances in the market and constitutes unfair competition for cashew traders and industrialists in Nampula because of the high prices paid for the nuts.
In order to export the raw product, Asian operators declare the cashew nuts as beans to deceive the customs and port authorities. Where successful, this costs the state large sums, since it does avoids the 19 percent export surcharge. Nampula has a total of 33 cashew nut processing factories, of which 12 are in operation, employing about 13,500 workers. Thirteen factories are closed because of lack of raw materials, despite the province’s production averaging 30,000 tons per year.
Under a recently launched cashew marketing campaign, the province of Nampula proposes to buy about 44,000 tons to supply the factories, with the main objective of securing jobs and revenue collection.
Responding to the cashew industry’s concern, Minister of Industry and Trade Max Tonela said on a recent visit to Nampula that his sector and that of Agriculture and Food Security would meet soon to discuss strategies for solving the problem.
He confirmed that he had received complaints from AICAJU concerning false declarations in the export of cashew nuts from the Port of Nacala, promising a serious approach in an appropriate forum, because, in his words, the state should not be damaged.