File photo of cashew nuts
Illegal cashew buying activities are thriving in parts of the West Gonja Municipality despite clear pricing and licensing regulations by the Tree Crops Development Authority (TCDA), prompting a joint crackdown by the Cashew Traders and Exporters Association of Ghana (CTEAG) and state regulators.
Investigations by CTEAG, West Gonja Branch, reveal that some buyers operating in the Damongo Municipality and surrounding farming communities are deliberately flouting the TCDA-approved minimum producer price of GH¢12.00 per kilogram, instead purchasing raw cashew nuts at significantly lower prices to the detriment of farmers.
The approved price applies strictly to cashew nuts meeting regulated quality standards, including a 46 out-turn, 190 nut count, and a maximum moisture content of 10 percent.
However, evidence suggests that certain middlemen are exploiting weak enforcement and farmers’ financial distress to force sales below the legal threshold.
In a strongly worded statement, CTEAG and the TCDA warned that any buying or selling below GH¢12.00 constitutes an illegal act, stressing that offenders will face sanctions in accordance with the law.
Even more troubling, the Association disclosed that some individuals currently buying cashew in the municipality are not licensed by the Tree Crops Development Authority, making their operations unlawful from the outset.
Under Ghana’s tree crops regulations, only TCDA-licensed aggregators are permitted to operate within the cashew value chain.
“Unlicensed buying is not only illegal, but it is destroying trust, distorting prices, and bleeding farmers dry,” the Association said.
To stem the growing abuse, the TCDA and CTEAG will imminently begin a registration and verification exercise targeting all aggregators, traders, and exporters in West Gonja.
Operators who fail to present valid TCDA licences and operational documents will be barred from buying and handed over to the Ghana Police Service for prosecution.
The Municipal Chairman of CTEAG, Iddrisu Sumani, popularly known as Azambuja, described the situation as an organised attempt to sabotage the regulated cashew market.
“This is no longer a misunderstanding of prices. It is a calculated violation of the law. Farmers are being short-changed, and the industry is being undermined.
This crackdown will be firm and uncompromising,” he warned. Sumani, who is also the Founder and CEO of Bunyanso Farms Limited, a TCDA-licensed aggregator, said the enforcement action is aimed at protecting farmers, restoring pricing discipline, and sanitising the cashew trade in the Savannah Region.
CTEAG has further urged cashew farmers to reject illegal buyers and report any person offering prices below GH₵12.00, assuring them that their identities will be protected and swift action taken.
As the cashew season peaks, the unfolding enforcement drive is expected to test the resolve of regulators and expose entrenched illegal networks that have long operated under the radar.
For farmers in West Gonja, the message from regulators is clear: the era of price manipulation and unlicensed buying is coming to an end.