Tanzania’s NFRA triples storage capacity, faces criticism over market control

TANZANIA – The Tanzania National Food Reserve Agency (NFRA) has significantly increased its grain storage capacity, with officials reporting that storage capacity has tripled since early 2021.

This expansion has enabled the agency to purchase 400,000 tonnes more than previous levels, a move aimed at strengthening food security and enhancing grain exports within the sub-region.

Despite these advancements, concerns remain over the impact of centralized grain trade on market autonomy.

While the government’s interventions have led to a visible surplus, critics argue that restricting private traders from purchasing grain directly from farmers may have long-term consequences for the agricultural sector.

State-controlled purchasing often leads to price suppression, discouraging commercial farming and private sector investments in agriculture.

NFRA managers maintain that increased government purchases ensure farmers receive better prices for their produce compared to earlier periods.

However, traders, who typically offer competitive rates, have been sidelined. The move to remove free trade in grain has been justified by policymakers on the grounds of controlling rising maize flour prices, blaming traders for price hikes.

This has led to calls for banning direct trader access to grain, a measure that has found public support due to the perception that it keeps urban grain prices low.

However, some analysts warn that these interventions could stifle agricultural growth. The expansion of commercial farming is dependent on favorable pricing mechanisms, and state control over grain trade could discourage capital investment in the sector.

The increased production seen in recent years has largely resulted from favorable weather conditions, expanded farming acreage, and subsidized fertilizer programs. If market forces are not allowed to function freely, the sustainability of these gains could be at risk.

According to analysts, NFRA’s recent grain sales to the United Nations World Food Programme (WFP) and increased exports to neighboring countries highlight the potential for a robust grain market.

Critics argue that private traders could have facilitated these transactions, fostering a more dynamic and resilient grain industry.

Analysts recommend that NFRA’s role may need to evolve to align with market realities. Rather than controlling the majority of grain trade, the agency could focus on maintaining emergency stockpiles and managing surpluses designated for humanitarian aid.

This could include engaging in public works programs for food relief while allowing market forces to drive agricultural growth.

By adapting to these changing dynamics, analysts say that NFRA could enhance its efficiency while ensuring long-term food security without stifling private sector participation.

Sign up to HERE receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.