(Ecofin Agency) - On March 13, 2018, Senegal’s trade minister Alioune Sarr (photo), signed a memorandum of understanding on the marketing of the artisanal-made raw oil and the industrial refined oil with several local operators of the peanut sector.

The operators who signed this memorandum are namely Sonacos, Touba agribusiness complex (CAIT) and the industry and agribusiness operators association (RASIAT).

According to Agence de presse sénégalaise (APS), the document defines the marketing conditions and regulates oilseed imports. It is also aimed at boosting peanut oil sales in the country.

 Under the terms of this agreement, which enters into force upon signature at the end of the current campaign, artisanal processors should sell their overall output (which must, by the way, meet the quality standards) to local refiners. These refiners commit to purchase all the 80,000 tons of raw oil produced at the artisanal crushing plants.   

As far as the government is concerned, it will regulate oil imports and negotiate with banking institutions to secure funding for marketing activities.  “Due to the sensitivity of the product, the ministry of commerce reserves the right to plan a safety stock and authorize exceptional imports if tension arises on the market,” the roadmap indicated.

 For the record, along with cotton, groundnut is the mainstay of cash crops produced in Senegal and it is also the main income source in rural areas.

Espoir Olodo