Cashew traders condemn price disruption, unfair practices
The Cashew Traders and Exporters Association of Ghana has expressed concern over unlawful practices by some unauthorised foreign traders in the market.
The association has claimed that its livelihood is under threat, alleging that foreign traders are manipulating the market by purchasing commodities at inflated prices; thereby disrupting established trade practices.
This activity, the local association has said, may potentially lead to collapse of the local cashew industry.
“These foreign dealers are currently trading in the local market instead of exporting the commodity,” indicated an official of the association, Kwabena Owusu.
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).
As part of allegations, the association disclosed it has become an increasing practice whereby foreigners have cultivated the habit of purchasing unripe cashew at exorbitant prices, causing authorised domestic traders to lose business.
“This practice not only undermines the established pricing system but also leads to purchase of unripe cashews, damaging the local industry and value chain’s integrity,” the association noted.
The aggrieved traders fear this practice, if not halted, will 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.
Why the price increased
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 price increase may also be due to volatile exchange rates between the dollar and the cedi.