Supporting the Policy Environment for Economic Development
SPEED+

Cashew

Cashew producers, typically smallholder farmers, can receive a 49% price increase on sale of raw cashew nuts if the export tax and peak season ban of exports on cashews is removed.  These cashew producers bear the cost burden of Mozambique's export tax, and this contributes to low RCN quality. By being forced to sell their RCN to processors/exporters at below market prices, rural farmers directly subsidize the domestic processing industry and have lost on average of USD 5 million in revenue per year over the last decade. Eliminating the export tax and peak-season export ban would result in a 49% increase in the price of RCN, directly benefiting incomes of small holder farmers. 

Further, because farmers cannot export RCN during the high season (Oct-Jan) when prices are favorable, they have lost out on around USD 2 million a year in export price premiums. Overall, producers—who are largely poor rural farming familiesearn 20% lower incomes due to the current cashew policy environment. According to a model developed by SPEED+ (file below), eliminating the export tax and peak-season export ban would result in a 49% increase in the price of RCN, directly benefiting incomes of small holder farmers.

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