In Mozambique, Cashew cosidered as one of the most lucrative crops owing to suitable soil and climate for its cultivation. The production scenario has not improved after war with serious implications for producers and workers in the country. Mozambique needs to plant millions of new trees each year to regain its major position in cashew production in the world. Developing new hybrid trees resistant to current diseases with higher productivity could boost yield. Many cashew factories have been established in rural areas and transport and electricity supplies are not restored. In 1997, there were about 15 factories become operational but less than 50 percent of its installed capacity was utilized. The kernels are mostly exported to USA, EEC and South Africa. The basic requirements of high standards, brand name and marketing network have never been attempted in Mozambique. In 1994, World Bank recommended liberalized trade for cashew in veiw of inefficient production in the factories and lower farmers income, but not accepted by the people and Government of Mozambique. Studies conducted in Mozambique indicated that an improved management and small-scale processing units could elevate the position of cashew industry as whole. Finally an export duty has been fiexed between 18 percent and 22 percent for the next five years and it is expected that the export tax gained would be utilized for the promotion of cashew farming in the country.
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