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Ghanaian cashew farmers have expressed dissatisfaction with a new pricing scheme proposed by the Ghana Tree Crop Development Authority (TCDA).
In particular, farmers are blaming the Ghana Cashew Council (GCC) representing cashew growers in the TCDA for wanting to dictate cashew prices with the introduction of a new price regime that will set an upper limit for prices. of the cashew.
Cashew farmers have attributed this move to a lack of proper representation on the Council as there are no major cashew exporters in the GCC to provide a better understanding of the challenges of cashew cultivation that will aid in the decision-making process. and they will advance. the cause of the cashew farmer.
According to the cashew farmers, the introduction of this new pricing scheme will negatively affect their business through; preventing them from setting competitive prices for their products and creating unemployment for commission traders who act as intermediaries between farmers and export companies, putting them out of work.
Furthermore, in the absence of support schemes, farmers say this GCC initiative will paralyze their businesses as they will not make enough profit to pay off loans taken for their agribusinesses.
Speaking to adomonline.com, one of the farmers explained: “We want to sell our products at competitive prices, depending on their quality, to be able to pay off our loans and to be able to expand our farms,” said the farmer.
According to this farmer, any attempt by the GCC Authority to regulate and control prices will lead to the collapse of the cashew industry and put farmers in perpetual debt.
This comes just a month after President Nana Akufo-Addo commissioned TCDA on September 29, 2020 to develop tree crops in the country.
The President directed the Authority to lead the agenda for the diversification of Ghana’s agriculture through the development of the tree crop sector, and explained that the Government’s strategy is to promote the development of tree crops, other than cocoa, with economic potential equal or even greater.
Examples of worst practices
The implementation of the same or similar price regulation measures in countries like Tanzania and Ivory Coast, farmers say, has explained the collapse of their cashew export business in those countries.
The situation, farmers have said, has had big economic implications for players in the cashew industry value chain and they wonder why the government will want to go on a similar tangent.
Farmers therefore insist that a free market policy, as has always been the case, must remain the way forward.
The farmers have agreed to form an association, if necessary, to fight against any unpleasant policies that negatively affect their livelihoods.
