Tanzania’s maize price hike strategy boosts NFRA purchases in Rukwa region

TANZANIA – Tanzanian President Samia Suluhu Hassan’s decision to raise the retail price of maize from TZS 600 to TZS 700 per kilogramme (US$ 0.25 to US$ 0.29) has led to significant gains in the maize purchasing season for Tanzania’s National Food Reserve Agency (NFRA).

According to the Sumbawanga Zone Office of the NFRA, a record-breaking purchase of 88,000 tonnes of maize has been made between August and October 2024, thanks to the price strategy.

This follows President Samia’s price adjustment, made during her August tour of the region, as part of her broader strategy to strengthen Tanzania’s agricultural sector.

This achievement far exceeds the 60,000 tonnes bought in the previous year, signaling a strong response from farmers and traders alike.

According to farmers, the higher price of TZS 700 (USD 0.29) per kilogram has boosted their incomes, and the introduction of seed subsidies has made it easier for them to sustain and increase maize production.

Many farmers expressed optimism that these measures would continue to stabilize their earnings in the coming years.

Grain dealers have also praised the government’s efforts to streamline the purchasing process and ensure timely payments.

 “This season has been one of the best in recent years. The government’s interventions have clearly made a difference,” said a representative of a local cooperative society.

Alongside the price increase, a subsidy on maize seeds was introduced, further incentivizing farmers to engage with the NFRA. As a result, both small-scale farmers and large-scale traders flocked to sell their produce to the agency.

Marwa Range, the NFRA Zonal Officer for Sumbawanga, described this year’s maize purchasing season as historic.

The agency set a target to buy 100,000 tonnes, with Range confirming that they expect to meet or come very close to this goal.

 “So far, we have purchased 88,000 tonnes of maize and are on track to reach 90,000 tonnes before concluding the season,” Marwa said.

The purchasing process has been facilitated at nine centres across Sumbawanga, Kalambo, and Nkasi districts, including locations in Mazwi, Kanondo, and Laela, among others.

Sellers have benefited from a streamlined system where the produce is inspected for quality and payments are made within 5 to 14 days, as per government procedures.

Technological Advancements

An important innovation this season has been the implementation of a digital system for maize purchases.

According to Mr. Range, the new system has significantly enhanced the efficiency of the NFRA’s grain purchasing operations.

 “The system has improved efficiency by enabling the rapid and efficient transmission of seller information to the relevant departments, thereby simplifying the payment process,” he explained.

The use of this digital platform has reduced paperwork and facilitated faster payment authorization, which has been particularly appreciated by farmers.

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