Africa-Press – Tanzania. THE Ministry of Agriculture is exploring a better model for cotton trading to enhance competition among buyers and raise farm gate prices, Deputy Minister David Silinde told the National Assembly yesterday.
The move follows a recommendation by Maswa West MP Mashimba Ndaki (CCM) who questioned the government’s measures to ensure stronger competition among traders purchasing cotton from farmers.
Mr Ndaki proposed that the government considers adopting the Simiyu Model of cotton trading, where individual buyers purchase directly from farmers as a way to empower farmers and improve their returns.
In response, Deputy Minister Silinde said the government had taken the suggestion into consideration and emphasised that a stakeholders’ meeting scheduled for today would address key issues in the cotton sector, including pricing and trading models.
“This meeting will help us to come up with a better means of cotton buying,” he stated, expressing optimism that reforms could emerge from the discussions.
Mr Silinde explained that cotton in Tanzania is currently traded under a liberal market system, with over 35 companies licensed to purchase cotton.
These companies operate based on seasonal market conditions and a guiding price agreed upon by stakeholders.
“The government ensures that the agreed indicative price is adhered to during procurement,” he said.
He added: “stakeholder coordination and market regulation remain a government priority.” He also noted that the Tanzania Cotton Board (TCB) has entered into agreements with cotton buying companies to employ agricultural extension officers in cotton-producing wards.
These officers are tasked with providing support services aimed at increasing productivity and quality of the crop.
“Companies are issued licences to purchase cotton in wards where they have deployed extension officers and they must operate according to the stakeholder-approved indicative price and current market rates,” Mr Silinde elaborated.
The proposal to revise the cotton trading model comes amid ongoing efforts to improve farmer welfare, increase agricultural competitiveness and ensure fair pricing in Tanzania’s cotton sector a key cash crop for many rural households.
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