Ivory Coast cashew nut processors are asking the government to renew a subsidy program, warning that the sector could go bankrupt if it does not receive more support.

The Ivory Coast Cashew Industry Group (GTCI), which represents five organizations with the ability to process 41,000 tons of cashews annually, sent a letter at the end of December trying to appeal to the government that was seen by Reuters this week.

According to Reuters, the letter asked for the renewal of a plan that guaranteed raw cashew nut suppliers up to 20% of the GTCI’s processing capacity at the beginning of each season.

Though the cashew season usually runs from February to June, it officially starts once the government establishes a guaranteed minimum price for cashew farmers, which has still not been set for 2024.

The GTCI said in the letter that its members were at risk of going bankrupt if they did not receive support from the government. About eight Ivory Coast cashew processors have gone bankrupt since 2020, according to the GTCI.

"All we are asking is to be able to renew the agreement for the next 4 years," the letter said. It also requested compensation for losses of roughly $7.5 million linked to supply chain issues.

A source working in the Ivory Coast finance ministry said that the GTCI’s request is still being considered.