Maputo — The Mozambican Association of Cashew Industries (AICAJU) has warned that less than 35,000 tonnes of cashew nuts will be processed in Mozambican factories this year, which is more than 33 per cent less than the 52,000 tonnes processed last year.

In a Monday press release, AICAJU notes that Mozambique has less than ten processing plants operating and some of these will stop processing in the middle of this year, probably in August, for lack of raw materials.

"The Asian processors can now buy in Mozambique raw material at inflated and unfair prices, distorting the market with a negative impact on Mozambican industry and, ultimately on the Mozambican state coffers", the release protested.

In other words, Mozambican industries find it difficult to sell cashew kernels to the Indian market, while the Indian industries snap up thousands of tonnes of raw nuts from Mozambican farmers, at prices the Mozambican processing factories cannot compete with.

Nonetheless, AICAJU declared its confidence in the measures the Mozambican government is taking and believes that "through discussions between the state, the private industry and the cashew producers, it will be possible to implement measures in good time to defend the sector, which will allow a cashew campaign in 2020 that is fair for all the stakeholders".