What’s happening with Lindi and Mtwara as far as Cashewnuts are concerned?

[Herr muller]

Tho i am not a tz citizen, i have a very great intrest in tz because soon i will be landing there on investment issues ,and one key area i will be investing heavily is in agriculture.

Now i have been following these issue of korosho and whats taking place leaves me with more questions than answers,Now for the last korosho brought in a lot of foreing cash, and aslo stablized tz shillings.

Now it does not require rocket science to know that tz gava should fully support this industry.But to my suprise the gava want to withdraw the 65% levy. HOW ON EARTH???????.

Despite spirited fight from lindi and mtwara mps and aslo from my favorite tz mp zitto kabwe, the gava went ahead and did this take away levy.I knew it will happen coz most mps are from ccm, and majority of ccm mps all they know is to sing ccm song, without putting FACTS, INTELLIGENT and MORAL issues in the picture.

How do you deprive korosho of this levy yet for now korosho is doing the best, infact more money should be allocated to it.Its like taking money from a companys division that is doing very well thereby denying it the needed cash to progress.Since i dont know much abaut lindi and mtwara my question is simple, is this a political war to weaken the economy of lindi and mtwara and if the answer is yes WHY is lindi and mtwara being made a ccm target?

Hope i can the answer pls.

Be blessed.

 

[Kifyatu]

Very good questions Herr muller. I will give you the inside scoop.

CASHEWNUT EXPORT LEVY
[emoji830]Up to now TZ is exporting over 90% of its cashew nuts in raw form (unprocessed). Raw cashews fetch low prices in the world market than processed ones.

[emoji830]Realizing this, the govt started building plants to process cashews locally and sell processed cashews to the international market at higher prices.

[emoji830]To encourage local cashewnut farmers/bodies to process cashews locally, govt imposed this EXPORT LEVY to make it less profitable for farmers to sell raw cashews abroad than locally.

[emoji830]The idea was to use part of this export levy to strengthen local processing plants so that we don't export raw cashews. The money (levy) did not go back to farmers but to these cashew nut bodies entrusted with its development.

TRAGEDY
It turns out that (for some big shots in the cashew industry) there was no incentive to process cashews locally if it meant there will be no EXPORT LEVY to be collected and pumped back to these bodies (NOT FARMERS). It was apparent someone was benefiting personally from this export levy hence the incentive to continue exporting raw cashews.

SOLUTION
The govt decided to stop disbursing these funds (levy) directly to local cashew nut bodies so that they (govt) can channel the funds properly into strengthening local processing plants.

Please note:
1. No other crop export levy is given back to local crop bodies like the cashew levy.

2. Farmers are really not missing anything here. The funds do not go back to farmers pockets. Some fat cats benefiting from these funds are the ones making this noise.

3. In fact if the govt fully develops these local processing plants, the farmers will benefit more because there will be no EXPORT LEVY for their raw cashews anymore. More money into farmers pockets. Less money into few special interests.

4. You have to ask yourself this. Whose BENEFIT was the big tug-of-war you witnessed in Parliament for? Farmers or some fatcat middle agencies?

I don't know how good your Kiswahili is. However, this MP has summarized the historical perspective for this EXPORT LEVY very nicely even though he was interrupted several times. Take a look.

 

[Herr muller]

Very good questions Herr muller. I will give you the inside scoop.

CASHEWNUT EXPORT LEVY
[emoji830]Up to now TZ is exporting over 90% of its cashew nuts in raw form (unprocessed). Raw cashews fetch low prices in the world market than processed ones.

[emoji830]Realizing this, the govt started building plants to process cashews locally and sell processed cashews to the international market at higher prices.

[emoji830]To encourage local cashewnut farmers/bodies to process cashews locally, govt imposed this EXPORT LEVY to make it less profitable for farmers to sell raw cashews abroad than locally.

[emoji830]The idea was to use part of this export levy to strengthen local processing plants so that we don't export raw cashews. The money (levy) did not go back to farmers but to these cashew nut bodies entrusted with its development.

TRAGEDY
It turns out that (for some big shots in the cashew industry) there was no incentive to process cashews locally if it meant there will be no EXPORT LEVY to be collected and pumped back to these bodies (NOT FARMERS). It was apparent someone was benefiting personally from this export levy hence the incentive to continue exporting raw cashews.

SOLUTION
The govt decided to stop disbursing these funds (levy) directly to local cashew nut bodies so that they (govt) can channel the funds properly into strengthening local processing plants.

Please note:
1. No other crop export levy is given back to local crop bodies like the cashew levy.

2. Farmers are really not missing anything here. The funds do not go back to farmers pockets. Some fat cats benefiting from these funds are the ones making this noise.

3. In fact if the govt fully develops these local processing plants, the farmers will benefit more because there will be no EXPORT LEVY for their raw cashews anymore. More money into farmers pockets. Less money into few special interests.

4. You have to ask yourself this. Whose BENEFIT was the big tug-of-war you witnessed in Parliament for? Farmers or some fatcat middle agencies?

I don't know how good your Kiswahili is. However, this MP has summarized the historical perspective for this EXPORT LEVY very nicely even though he was interrupted several times. Take a look.

Oky so thats the case sir, my swahili is not very good, being a kenyan you know our swahili ni ya kuomba maji, lakini mtu akiongea naelewa kabisa, kujibu ndio ngumu kidogo. lakini nimekuelwa, i have fully understood your point, so the levy goes to the "FAT CATS" yaani wakubwa, i am very intrested in korosho coz if possible i want to set up a proccessing factory in lindi or mtwara or any korosho growing region new ones like morogoro or chunya district. prosseced nuts are the way to go, it sells very high price here in abroad a 500grams goes for around $4 thats around 10,000 tz shilings per half kilo.so lets set up proccessing industries to help ourselves and earn more hard currencies. thank you sir

 

[Kifyatu]

Oky so thats the case sir, my swahili is not very good, being a kenyan you know our swahili ni ya kuomba maji, lakini mtu akiongea naelewa kabisa, kujibu ndio ngumu kidogo. lakini nimekuelwa, i have fully understood your point, so the levy goes to the "FAT CATS" yaani wakubwa, i am very intrested in korosho coz if possible i want to set up a proccessing factory in lindi or mtwara or any korosho growing region new ones like morogoro or chunya district. prosseced nuts are the way to go, it sells very high price here in abroad a 500grams goes for around $4 thats around 10,000 tz shilings per half kilo.so lets set up proccessing industries to help ourselves and earn more hard currencies. thank you sir

You are most welcome. Good luck with your investment plans. Karibu sana Tanzania.

 

[Wo shi niubi]

Nilikuwa nasikia korosho koroso levy levy lakini sikupata maelezo ya kina kama ya Mh Mgumba, Mgumba katoa maelezo mazuri, masikini kapigana peke yake kutetea wananchi na kuzuia rushwa licha ya kuwa interrupted kila anapoongea, hizi board zinashirikiana na wabunge kuiba pesa tu ,wanakusanya pesa hazifikishwi kwa walengwa halafu wanatumia wabunge baadhi bungeni kupaza sauti kuwa wananchi wanaonewa serikali haijali wanyonge kumbe ni wezi wanajifunika kwa sula ya kuwatetea wananchi. Na wasihi wabunge wa upinzani kuwa makini maana mnahama katika agenda na sifa ambazo mlizipata za kupinga ufisadi leo mnageuka kuanza kutetea wizi na kuwaaminisha wananchi uongo, mgumba kasema kweli reference haiwezi kuwa maneno ya mtaani bali ni sheria iliyopo mezani.

 

[yero]

Oky so thats the case sir, my swahili is not very good, being a kenyan you know our swahili ni ya kuomba maji, lakini mtu akiongea naelewa kabisa, kujibu ndio ngumu kidogo. lakini nimekuelwa, i have fully understood your point, so the levy goes to the "FAT CATS" yaani wakubwa, i am very intrested in korosho coz if possible i want to set up a proccessing factory in lindi or mtwara or any korosho growing region new ones like morogoro or chunya district. prosseced nuts are the way to go, it sells very high price here in abroad a 500grams goes for around $4 thats around 10,000 tz shilings per half kilo.so lets set up proccessing industries to help ourselves and earn more hard currencies. thank you sir

Kindly contact me for partnership in establishing the processing factory in Tz. Lets team up to make it happen. I am a strong believer in agriculture.