Unlawful practices by some unauthorised foreign traders in the market along the cashew value chain are causing concern by affecting the livelihoods of farmers, the Cashew Traders and Exporters Association of Ghana says.

The association claims foreign traders are manipulating the market by purchasing commodities at inflated prices, thereby disrupting established trade practices.

This activity may potentially lead to a collapse of the local cashew industry.

The association claims foreign players are unlawfully purchasing cashew as high as GH¢25, significantly exceeding the official selling price of GH¢15 per kilogramme.

This practice goes against regulations established by the Tree Crop Development Authority (TCDA). Foreigners have cultivated the habit of purchasing unripe cashew at exorbitant prices, causing authorised domestic traders to lose business.

The aggrieved traders fear that this practice, if not halted, would cripple cashew buying businesses and negatively affect farmers once the local market is destabilised.

In December 2024, the TCDA, under the Ministry of Food and Agriculture’s auspices, set the minimum price for cashew in 2025 at GH¢15 per kilogramme.

This is a significant increase from the 2023 minimum price of GH¢8.50 per kilogramme

TCDA announced the minimum price to fairly compensate farmers for their labour and production costs, aiming to improve farmers’ livelihoods and encourage more production. TCDA said it will continue to monitor economic conditions and adjust the price if necessary.

The cashew sector is increasingly becoming one of the most important agricultural sectors in Ghana, contributing significantly to economic growth, particularly in job creation and poverty reduction.

Cashew’s price volatility makes it difficult for actors in the sector, especially local processors, to effectively plan their operations for the year; and this not only affects those actors but also the entire cashew sector’s growth.

Source: thebftonline.com /picture credit Ghanaweb