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  • The New Economy For The Year Of 2019/20 Opens The Official

    Sep 30th, 2019

    The government has announced the purchase of a new seasonal cashew involving consumer technology to register on the Cashew Board through the Ministry of Agriculture's Agricultural Trade Management Informataion System (ATMIS) "The 2019/2020 season of cashew nuts will be through an open auction through the Tanzania Product Market (TMX) platform where there will be no use of auction boxes," the Minister said. He said that buyers who are registered to meet the criteria will be required to pay Bid Security depending on the amount of cashew the buyer wants to buy through the mediation account owned by the Product Market “This system will allow various buyers from different parts of the world to participate in the auction. Foreign buyers will be able to participate in the auction directly and will not have to open companies in the country, ”said the Minister.

    He said instead the buyers would be sponsored by Settlement Bank recognized by the Product Market (TMX) to increase competition at auctions. "Payment banks will be responsible for providing cash availability for cashew payment in accordance with market mechanisms," he said. Commenting on domestic and overseas buyers he said they would be allowed to buy raw cashew nuts for stakes between 50 and 500 tons depending on demand. “The nuts in the stake will be sorted according to quality and grade criteria. The amount of cashew that will be sold at each session (auction) will be based on the information available in the sales catalog, ”he said. "The buyer will have to buy the whole lot of cashew nuts in one session to facilitate the delivery of cashew nuts to the warehouse using the first in-first-out, FIFO-based cashew nuts," explained the Minister.

    He said Licensed Buyers would be given a special code to use to enter the system and participate in auctions. The winning bidder at the auction will be obliged to pay for the winnings he has won within three (3) days after the sale is made. All payments will be made through the Settlement Bank recognized by the Commodity Market. The commodity market will pay all stakeholders in accordance with the law within two days from the buyer completing the applicable payment. The minister explained that the procedure would eliminate the need for buyers to travel from one place to another to participate in cashew auctions "Cereal sales auctions will be held two days a week at all warehouses depending on the availability of cashew nuts, auctions will be on Tuesday and Thursday," he said. Minister Hasunga said the aim of the new procedure is to expand the market base which they believe will increase competitive yeast and enable better pricing to be achieved in line with global market trends. Through the Product Market platform there will be a broad spectrum of buyers, there will be transparency of cashew prices and farmers will be paid faster and on time. He said the Government's goal was to see all farmers being paid their money directly into their personal accounts at the existing Banks in their production areas.