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DAR ES SALAAM (Reuters) – Tanzanian President John Magufuli said the government could buy the country's cashew stock after firing two ministers and disbanding the regulator of the industry following the price of raw materials.
Last month, Magufuli ordered a 94% increase in the price of cashew nuts at regulators' auctions in the sector and sent the organization's head back to movements to protect farmers from too low prices . [nL8N1S37ZM]
Cashew nut is the most important export crop of the East African nation, but falling prices have prompted Tanzanian farmers to stop selling, claiming that operational costs were higher than those proposed for products. .
Agriculture Minister Charles Tizeba and his trade counterpart, Charles Mwijage, have been removed from office, the presidency said Saturday.
Japhet Hasunga has been appointed new Minister of Agriculture, while Joseph Kakunda will be in charge of trade.
The president, who had accused the cashew's board of directors of not having properly managed the industry, resulting in lower crop prices, also dissolved the board.
The government has asked cashew buyers to submit their purchase plans by Monday.
On Saturday, Magufuli visited a military unit and inspected 75 vehicles that will be used by the government to facilitate the purchase of cashews in the country if private buyers do not take the crop at the government-mandated price of 3,000 shillings ( $ 1.31) per kilo.
The government will use the army and mixed-crop board to buy all the cashew nuts at a price of more than 3,000 shillings, Magufuli said.
"If private buyers do not respond to the government and tell us how many tons they will buy by Monday, the government will buy all the cashews and we have the means," he said.
Farmers have complained that the current price of 1500 shillings per kilo does not even match their cost of production.
Opposition leader Zitto Kabwe said Mr Magufuli should seek parliamentary approval before the government starts buying cashews from farmers.
"The government needs 600 billion Shillings to pay farmers, which requires the approval of Parliament," Kabwe wrote on Twitter.
"If the president wants to do this without respecting the law, we will oppose it."
(Report by Nuzulack Dausen, written by Duncan Miriri, edited by Toby Chopra)
