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  • Tanzania: few people participate in the auction, the price reduction

    Dec 12th, 2016

    According to the Board of Tanzania (CBT), as of 11.26.2016, Tanzania has held successful auctions 141,000 tons of raw cashew crop year 2016/2017, 28 967 tons which is licensed exports to India and 40 618 tons of Vietnam, 71,415 Mts remaining unlicensed exports.So this year's crop, Vietnam enterprises have been actively participating in the market of crude at the beginning of Tanzania, some enterprises Vietnam has registered the establishment of enterprises in Tanzania.

    Due to the human cost, the price of crude fell decreases. Tanzania is not the exception.Tanzania crude prices have cooled, from 3500-3800 Tsh (~ 1.614 to 1.75 USD) / kg early September 11/2016 now down to about 3200-3450 Tsh (~ 1.48 to 1.59 USD / kg) last week. Price reduction that is due to many reasons, including part because the number of buyers participate in auctions decreased (about 15 people) compared to a total of 107 licensed buyer of CBT season 2016/2017.

    When asked why the buyer does not continue to participate in the auction in large numbers as before, they all replied that the capacity of the port of Mtwara by weak and can not handle the huge quantity is purchased, the the Government has proposed to buy permission to use the port Tanzania Dar Es Salaam, at least for cargo from Lindi regions.According to information we get, the Government of Tanzania has agreed to transport crude to the port by road Dar Es Salaam; buyers commit to participate fully an upcoming auction.

    It is reported that this year's season, shoppers move through the port of Dar es Salaam for export but for purchase from the southern region of Tanzania (including Mtwara, Ruvuma Linde and) are suffering big losses if they only Men are allowed to use the port of Mtwara.

    Source: CBT / Ray Mtangi