Africa-Press – Tanzania. BANK transactions have enhanced efficiency in clove buying as well as relieving Zanzibar State Trading Corporation (ZSTC) of the risks of carrying bulk cash.
The revolutionary government has effective this crop buying season restricted clove sale payments to banks and mobile phone systems, compelling all farmers to open bank accounts.
“We highly appreciate the government because this (bank transaction) had been our plea for many years; it was highly risky to carry bulk cash to the buying stations,” ZSTC Managing Director Dr Said Seif told the ‘Daily News’ here over the weekend.
He said although initially the system had minor challenges, many of them have been addressed and both farmers and ZSTC officials are enjoying the system.
Zanzibaris are expected to accrue over 100bn/- out of their produce, thanks to the improved farm gate prices as a result of rising world market prices. Clove farmers are currently receiving 14,000/-, 13,000/- and 12,000/- per kilogramme of the first, second and third grade, respectively.
The payment is 80 per cent of the prevailing world market prices, with the trading corporation having to settle the remaining 20 per cent after selling the cash crop.
The new pricing, which puts the actual prices of the first, second and third grade clove at 17,000/-, 16,250/- and 15,000/- per kilogramme, respectively, compares favourably to the previous years’ prices of 14,000/-, 12,000/- and 10,000/-.
Moving the ministry’s 30.5bn/- budget for the 2021/2022 fiscal year in the House of Representatives last June, Trade and Industrial Development Minister, Omar Said Shaaban said the government envisaged buying 7,000 and 1,200 tons of cloves and clove stalks, respectively, during the 2021/2022 crop buying season.
ZSTC has as well embarked on seaweed business, almost doubling the prices from between 900/- and 1,000/- to 1,800/- per kilogramme of Cotton variety. The price of Spinosum variety on the other hand has risen to 700/- from 400/- per kilogramme, Dr Seif said.
He said the government’s trading arm has intensified the spice business as well as expanding its farms, which produce raw materials for Pemba-based oil industry.
