(Ecofin Agency) - Compared to last year, cashew exports in Cote d’Ivoire have plunged sharply. This was revealed by Malamine Sanogo, director of Cotton-Cashew Council (CCA in French), which is in charge of the sector. According to data published, “at this stage, 200,000 tons of nuts have been exported compared to 330,000 tons in 2015, over the same period, thus slumping by 40%”.

For Cote d’Ivoire, number one cashew producer worldwide, the figures are alerting. Despite a non-negligible output of 750,000 tons (exceeding India’s) at the beginning of the season, not everything was good. Among main reasons behind the decrease in output, is the illicit transfer to neighboring countries. “Due to high taxes on export in Cote d’Ivoire, farmer s close to borders sell their produce to Ghana, Mali or Burkina Faso,” Fousséni Adama, exporter, told Abidjan.net.

Other observers blame purchase price to producers (FCFA350 or €0.53 per kg) of being too low and driving them to turn to foreign buyers who are willing to offer them more. To this adds the el Niño phenomenon. “There is some delay in production because of the el Niño phenomenon but this does not threaten this production,” said Augustin Planty, Chief Executive of Océan, an exporting firm.

To counter the weather issue, the government has decided to subsidize the sector so as to achieve 30% to 40% of local processing against 5% currently.