We're planning commodity exchange set-up, says govt

By Carolyne Madoshi

Grain storage tanks. (File photo)

The government through the ministry of Agriculture, Food Security and Cooperatives is planning to enter into commodity exchange as an initiative towards achieving Big Results Now (BRN).



Minister for ministry of Agriculture, Food Security and Cooperatives Eng Christopher Chiza made the remark to The Guardian shortly after a press conference held in Dar es Salaam.

“The ministry aims at constructing big silos to be used to facilitate commodity exchange through e- marketing, so that farmers and consumers become aware of the marketing prices of agricultural commodities,” Eng Chiza explained.
He said a study will be conducted to identify the strategic grains and to educate farmers on the programme for smooth implementation.

“I believe the programme will be achieved because the aim is to increase the agricultural sector’s contribution to the Gross Domestic Product from the current 14.5 percent,” he said.

Commodity exchange is the trading of various commodities and derivative products. Most commodity markets across the world trade in agricultural products such as wheat, barley, sugar, maize, cotton, cocoa, coffee, milk products and draw up contracts based on them. These contracts can include spot prices, forwards, futures and options on futures. Other sophisticated products may include interest rates, environmental instruments, swaps, or ocean freight contracts.

In 2013 President Jakaya Kikwete unveiled the Big Results Now initiative which models the Malaysian development strategy and has been adopted by Rwanda and Nigeria as well.

The announcement ensured that the objectives of the policy will be delivered with mechanisms created by Tanzania's top officials to ensure smooth progress in achieving the Five-Year Development Plan and Vision 2025.

The country focuses on becoming a middle income economy by 2025. “Development plans are no longer secret matters for the executives, but the public will be involved to learn about the development plans and share their views accordingly,” he said.

As part of the Tanzania Government's effort to transition the country from low to middle-income economy, beginning of 2013-2014 financial year, a comprehensive system of implementation will focus on six priority areas of the economy; energy and natural gas, agriculture, water, education, transport and mobilization of resources.

Big Results Now (BRN) initiative aims at adopting new methods of working under specified timeframe for delivery of the step-change required