The government of Mozambique may soon subsidize cashew prices

Published May 4, 2023

Tridge summary

The Government of Mozambique has approved a law to revitalize the cashew sector, which has the potential to contribute 20% to the country's agricultural exports. The law aims to establish a financing line and subsidize cashew prices, among other initiatives. It also plans to allow processors to export raw cashew nuts without a license, a change intended to increase industry capitalization. However, the law is facing criticism due to issues of smuggling and fraudulent activities in the sector, with claims that government statistics include clandestine exports. A separate law promoting private investment is also under review.

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Original content

There are many good intentions from the Government of Mozambique for the cashew subsector. Some are expressed in the law that, today, was approved in general by Parliament. One of them is the creation of a financing line in two years and the other is to subsidize the cashew price. The Mozambican government wants to take a fresh look at a sector whose product has been growing around the world: cashew nuts. Although the World Bank mentions, in a study carried out in 2020, that Mozambique is not taking advantage of as much as it could, the Minister of Agriculture and Rural Development, Celso Correia, in presenting the law, began by showing the gains that the value chain has brought to the country in the 2021/2022 campaign. The producers, together, had a gross income of around 5.7 billion Meticais, 6.7 billion Meticais from the export of raw cashew nuts. The industrial processing sector, according to Celso Correia, has “about 20 thousand direct jobs and is responsible for about 20% of ...

Source: Opais