- The Ministry of Agriculture of Tanzania has notified nonlocal firms to purchase agricultural produce through auctions and authorised local markets
- The move was reportedly taken to protect both farmers and local companies from low prices
The Ministry of Agriculture of Tanzania has notified nonlocal firms to purchase agricultural produce through auctions and authorised local markets. Direct buying from farmers is now barred for these firms. In a press meeting, Minister for Agriculture Japhet Hasunga  stated that the move was taken to protect both farmers and local companies from low prices and exploited by  foreign companies conducting business in Tanzania. He pointed out that the restriction does not breach the East African Community Protocol on the free movement of goods because the borders are still open. He further clarified that there will be no restrictions on the free movement of goods and the foreign traders can buy from secondary markets. Apart from protecting its farmers the restriction also aims to prepare the country against a looming food deficiency due to floods locust invasion. Flash floods in the first week of May ruined key agricultural regions in Southern, Northern, Central and Western Tanzania. Covid-19 also led to a sharp fall in the prices of major and strategic commercial crops. Minister for Industry and Trade Innocent Bashungwa revealed in a report last week that cotton, coffee, tea, and tobacco were severely hit by the pandemic. Travel and cargo restriction in key markets in Europe, America, and Asia have caused the grounding of buyers of Tanzanian cash crops in key markets.
Tanzania plans to store 120,000 tonnes of cereals, particularly maize. The government has also instructed the National Food Reserve Authority (NFRA) to purchase food crops from farmers for storage.
