Decision No. 120/1999/QĐ-TTg Approving the Development Plan for Cashew Trees until 2010.

DECISION OF THE PRIME MINISTER

Regarding the approval of the Plan for the development of cashew nuts until 2010

PRIME MINISTER

WHEREAS EDUCATION Law on the Organization of the Government dated September 30, 1992;

Considering the proposal of the Ministry Upon consideration of the proposal of the Director of the Ministry’s Office,

DECISION:

Article 1. Approves the Plan for the development of cashew nuts until 2010 with the main contents as follows:

1. Orientation, objectives:

Developing cashew nuts to exploit the advantages of the cashew tree, which has food value, can be used for wood, is easy to plant, requires low investment, withstands drought, thrives in poor soil, and suits the needs of the poor, serving domestic market demands and exports with a production volume exceeding 100,000 tons of cashew kernels per year

 Developing cashew nuts in areas with suitable conditions, prioritizing coastal provinces in Central Vietnam and lowland areas in the Central Highlands; combining improvement and intensive cultivation of existing cashew orchards with new planting;

Increasing income, creating jobs (including agricultural and processing industry labor), especially in poor regions and households.

2. On solutions:

a) Direction for planning production zones: Based on the current land fund in localities, first in coastal provinces in Central Vietnam and lowland areas in the Central Highlands, to plan land for cashew cultivation according to the advantage of each region, promoting the ability to grow cashews in upstream protective forests and coastal areas.

New planting combined with improving existing cashew orchards using high-yield, quality varieties, gradually forming concentrated, intensive cashew zones; 

Planting cashew in protective forest areas to produce nuts while protecting upstream and coastal areas and preserving the ecological environment.

b) Market: The Ministry of Agriculture and Rural Development, relevant ministries and sectors continue to maintain and expand existing markets in the United States and China, and seek new markets.

Based on the processing capacity of processing facilities, balanced with the current cashew nut production, if necessary, importing additional raw cashew nuts for processing facilities to maximize the capacity of existing factories and create more jobs. The Ministry of Trade facilitates procedures for importers to facilitate imports, coordinating with the Vietnam Cashew Association to unify the price of imported raw cashew nuts to not affect the interests of enterprises and cashew growers.

c) On varieties: There must be a set of good varieties with high yield suitable for the ecological conditions of each region, to replace the current low-yielding varieties according to the direction: Selecting good varieties from existing trees and importing good varieties to quickly propagate for new planting and improving low-yielding existing cashew orchards. Strive to ensure that by the end of 2000, all cashew areas nationwide are planted with top-quality varieties. 

The Ministry of Agriculture and Rural Development directs the Southern Institute of Agricultural Science, the Vietnam Academy of Agricultural Science, the West Highland Institute of Agricultural and Forestry Science, and research institutions with conditions to establish in the regions: Southeastern Region, Central Coast, Central Highlands, each place having a variety garden to provide sufficient top varieties for localities, businesses, and people to crossbreed and create good varieties to meet the needs of cashew growers at reasonable prices. The Ministry of Planning and Investment balances the investment capital for top variety production facilities.

d) On price: Setting a reasonable purchase price for cashew nuts to ensure the benefits of cashew growers. Entrusting the Chairmen of People's Committees of provinces growing cashew nuts to consult with the Government Price Board to announce the minimum purchase price for raw cashew nuts at the beginning of the season to guide processing facilities to purchase raw cashew nuts.

đ) On tax: The Ministry of Finance studies and resolves the issue of tax exemption and reduction for cashew processing facilities and cashew growers, especially in poor areas with many difficulties, to encourage the development of cashew nuts. 

e) On investment and credit: For cashew grown in areas planned for protective forest planting, the policy supporting protective forest planting as stipulated in Decision No. 661/QĐ-TTg dated July 29, 1998 of the Prime Minister regarding the objectives, tasks, policies, and implementation organization of the Project to plant 5 million hectares of new forests, the level of support is 2.5 million dong per hectare taken from the annual plan for protective forest planting, the remaining capital is invested by cashew growers through normal loans.

Mobilize all other sources of capital for the development of cashew nuts including:

State budget investment for scientific research and technology; creation of top varieties; extension services, transfer of new advanced techniques for cashew trees;

Credit investment according to the plan: implemented for projects to improve and modernize technology, equipment, and new investments for processing;

Bank credit: ensuring capital for the needs of cashew growers;

Capital under the Program to solve employment, capital of the Bank serving the poor.

g) Encouraging the development of economic components in the cashew sector, especially farm models, investing in planting and processing cashew nuts.

h) Science and technology and the environment.

The Ministry of Agriculture and Rural Development studies the establishment of a cashew research department under the institutes: Vietnam Academy of Agricultural Science, Southern Institute of Agricultural Science, West Highland Institute of Agricultural and Forestry Science to comprehensively study physiology, biochemistry, pest control, cultivation techniques, and processing to serve the development of the cashew industry well; planning training for technical and management staff, including sending candidates abroad for training to have a capable team of cashew experts.

Article 2. THIS DECISION SHALL TAKE EFFECT 15 DAYS FROM THE DATE OF SIGNATURE.

Article 3. Ministers of the Ministries: Agriculture and Rural Development, Planning and Investment, Finance, Science and Technology, Environment, State Bank of Vietnam, Chairmen of People's Committees of provinces growing cashew nuts, Heads of related agencies are responsible for implementing this Decision./.