PNC Secretary Laments Ghana’s Failure to Regulate Cashew Prices, Leaving Farmers in Distress”

One of the main sources of revenue for Ghanaian farmers, particularly those in the middle belt and the northern region of the nation, is the cashew industry.se

Farmers are now at the mercy of middlemen, who set the pricing, as the government is powerless to control cashew prices.

The situation hasn’t altered despite multiple government initiatives to stabilize prices, which is putting farmers whose livelihoods depend on cashew cultivation through tremendous difficulty.

The Bono Regional Secretary for People National Convention (PNC) Mr. Abdul Samad Nurudeen, on Sunyani based Space FM’s weekend flagship program dubbed “The Hot Points” explained that one of the key reasons for the government’s inability to regulate cashew prices is the fact that the government does not buy cashew from farmers.

This means that the government has no direct influence on the prices of cashew, which are largely determined by the market forces of supply and demand.

He said as a result, farmers have to rely on middlemen who purchase cashew from them at low prices and sell at higher prices to the Indian exporters.

Mr. Samad Nurudeen, reiterated that the lack of regulation has also led to the emergence of a cartel that controls the prices of cashew in the country.

The cartel, which comprises powerful middlemen, determines the prices of cashew based on their own interests, leaving farmers with no bargaining power. This has resulted in a situation where farmers are forced to sell their produce at prices far below the cost of production, leading to significant losses.

The Ghanaian government has tried multiple times to control cashew prices, but none of these measures has been successful. One such intervention was the creation of The Tree Crops Development Authority (TCDA), a body established by an Act of Parliament, the Tree Crops Development Authority Act 2019 (Act 1010,2019), which was intended to provide a platform for the transparent and effective trading of agricultural commodities, including cashew.

Another intervention was the establishment of the Ghana Commodity Exchange (GCE), which was supposed to provide a platform for the trading of agricultural commodities. In Ghana, the cultivation, processing, and trading of six tree crops, cashew, shea, mango, coconut, rubber, and oil palm—are regulated and developed under continuous succession by the TCDA.

However, neither the GCE nor the TCDA have been able to successfully control cashew prices, and this has had an impact.

According to Samad Nurudeen the lack of regulation has also led to the exploitation of small-scale cashew farmers, who form the bulk of the industry. These farmers, who lack the resources and knowledge to navigate the market, are often taken advantage of by middlemen who offer them low prices for their produce.

He said the unpleasant situation has led to a situation where cashew farming is no longer profitable for many farmers, who are now contemplating on abandoning the crop for other lucrative ventures.

Mr. Abdul Samad Nurudeen concluded by stating that the business has been significantly impacted by the Ghanaian government’s inability to control cashew pricing, leaving farmers at the whim of middlemen who set prices.

Farmers have suffered enormous losses as a result of the cartel that has emerged as a result of the lack of oversight. The government must act quickly to address this problem and create an atmosphere that will allow cashew producers to prosper. To ensure that farmers receive fair pricing for their goods, this may entail direct market intervention or the creation of more efficient regulatory frameworks.