Ban of raw cashew exports illegal - MPs

Members of Parliament say the ban on raw cashew exports in the country has no legal basis and asked the Trade and Industry Ministry to immediately suspend it.

First Deputy Speaker, Ebo Barton-Odro, has consequently directed the leadership of the House to convey the concerns of the MPs to the sector Minister, Ekow Spio-Garbrah and submit feedback to the House by close of Thursday.

Deputy Majority Chief Whip and MP for Tain, Ahmed Ibrahim, who made a statement on the floor of the House described the action of the Ministry as illegal and urged the house to immediately call on the minister to suspend his directive as a matter of urgency.

The ministry of trade and industry with oversight responsibilities for trade regulations and controls under the import and export law act (503) section (13) of 1995 as amended in 2000, issued a directive that export of raw cashew nuts is permitted only after May 31.

Per the directive, any raw cashew nuts that are brought to the ports or borders of Ghana for export between March 31 and May 31, 2016, shall be confiscated to the state.

Commenting on the directive, Mr Ibrahim asked: "Under what law is the ministry going to confiscate raw cashew nuts without any due process?" adding if the government indeed wants to protect the few processing companies in the country, it must not be at the expense of the poor farmer.

He argued cashew production has attracted most of the youth due to high prices as a result of competition between local processing companies and their foreign counterparts. According to him, the directive has brought untold hardships to the poor farmers.

Most of the MPs supported Mr Ibrahim's position, saying the directive was unfair to the farmers.

Papa Owusu Ankomah for instance urged the Mr Ibrahim file an urgent motion Friday so that the House can take a decision on it before rises.

He said for the Trade Minister to call for confiscation of the products was far-reaching, adding the Minister's action undermines the laws of the country and Parliament.

Other MPs suggested the Minister be summoned to the house Friday and should he fail to come, be surcharged.

About 95 percent of Ghana's total production of cashew nuts estimated 68,000 metric tonnes, in its raw form are sent to overseas for processing. Processing of raw cashew nuts into kernels in Ghana increased from 4,250MT in 2009 to 17600MT, but very low figure of 2,500 MT in 2015.

This implies the industry is operating with just five per cent of its installed capacity of 7890MT.

Local processors are unable to obtain adequate supplies of raw material for processing due to intensive competition with purchases from traders at the farm gate.