The ban on export of raw cashew nuts, which will come into force in a week’s time, has received mixed reactions from industry players. The action was proposed by the task force appointed by the government in April, this year, to define the way forward for the Kenya’s struggling cashew nuts industry.
The government will officially announce the ban in a gazette notice to be published next week, the Minister for Agriculture, Mr William Ruto, said. But exporters of raw cashew nuts said the move would lock out many buyers and push down farm gate prices. Some farmers also expressed similar sentiments while local processors see this as an opportunity to bunch enough raw materials for processing cashew nuts products for unsatisfied local and international market.
According to Ruto, it is only the government through the National Cereals and Produce Board (NCPB) that will be allowed to buy the nuts directly from the farmers and sell it to the local processors. This will lock out middlemen who buy nuts on behalf of the exporters and currently command over 50 per cent of the market share.
The government will officially announce the ban in a gazette notice to be published next week, the Minister for Agriculture, Mr William Ruto, said. But exporters of raw cashew nuts said the move would lock out many buyers and push down farm gate prices. Some farmers also expressed similar sentiments while local processors see this as an opportunity to bunch enough raw materials for processing cashew nuts products for unsatisfied local and international market.
According to Ruto, it is only the government through the National Cereals and Produce Board (NCPB) that will be allowed to buy the nuts directly from the farmers and sell it to the local processors. This will lock out middlemen who buy nuts on behalf of the exporters and currently command over 50 per cent of the market share.
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