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  • Tanzania: Receipt System to Continue for Benefit of Farmers

    Aug 27th, 2016

    The government will not yield to pressure to scrap the warehouse receipt system, Agriculture, Livestock and Fisheries minister Charles Tizeba has said. Speaking during the official opening of a stakeholder meeting for cashew nut farmers in Bagamoyo Saturday, Dr Tizeba said only a few businesspersons, were not benefitting from the system.The minister accused middlemen of waging a war against the system, but said the government is on the farmers' side. "Government has directed that all raw cashew nuts are sold through the warehouse receipt system. I am surprised some stakeholders are lobbying for it to be scrapped," he said.

    The system is praised for giving farmers access to storage facilities, credit, markets and up to date information. Warehouse receipts are issued as evidence that the case cashew nuts, of a stated quantity and quality deposited at particular locations by reliable depositors.

    The receipts may be issued to farmers, traders, exporters, or processors as well as individuals or corporate bodies. Warehouse operators or collateral managers, who issue the receipts guarantee that the holders of the receipts are allowed to transport the cashew nuts. In his address, the minister hailed the system saying it safeguards Tanzanian farmers and ensured the government of efficient tax collection.

    "For a long time, cashew nut farmers have been short-changed by middlemen. This season we are looking at cashew nuts being sold between Sh2,500 and Sh2,600 per kilo." he while directing the Cashews Board of Tanzania to ensure the system was consistently used across the country.