Ivory Coast takes steps to control cashew exports and help local processors
By Ange Aboa
ABIDJAN, Nov 21 (Reuters) -The Ivory Coast government said on Wednesday it expects cashew processing companies to get a boost from new rules requiring producers of raw cashew nuts to seek the regulator's authorisation before exporting their crops.
Associations of cashew processors in Ivory Coast, which is the world's top producer of cashew nuts, have repeatedly denounced the plight of local manufacturers as crops are exported to big consumers, mainly Asian countries such as India and Vietnam.
From now on, the regulator will have to decide whether or not to allow exports, government spokesperson Amadou Coulibaly said at the council of ministers.
This authorization will be required not only for the export of raw cashew nuts, cashew kernels and cashew by-products but also for the export of cotton fiber, cotton seed and cotton by-products.
More than eight cashew kernel processing companies have gone bankrupt over the last four years, according to Ivory Coast Cashew Industry Group (GTCI), which said the government's decision should help ease manufacturers' supply problems.
"It's going to be a relief for us. Thanks to this measure, we'll be able to access good quality raw nuts much more easily and maintain our business without fear," the manager of a cashew processing company based in Bouake, the heart of the country's cashew processing industry, told Reuters on Thursday.
Already the world's largest cocoa producer, the country has emerged as a leading grower of cashew nuts with annual production of around 1 million tons. However, only a fraction of the nuts are processed locally as firms face steep competition from deeper-pocketed Asian importers.
The cashew harvest collected during the first three months of the season will be reserved for local manufacturers who will be able to obtain necessary supplies before exporters, two sources within the regulator told Reuters on Thursday.
"We plan to allow only local manufacturers to purchase the quantities needed between January and March, when quality is good," one of the sources said.
The second source added that during that period intermediary traders and buyers will be allowed to store raw cashew nuts for around 10 days only in order to prevent them from holding stocks for months.
The council of ministers also decided to lower the rate of the so-called DUS export tax on raw cashew nuts to 5% from 7%. This measure should help increase the cashew nut price paid to farmers.
Writing by Anait Miridzhanian
Editing by Frances Kerry
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