EXPORTERS association has called for the need to
address the excessive market monopoly in the
agro-business, that has become common in
some parts of the country holding back efforts to
boost the sector's growth.
This was unveiled in an interview with the
Tanzania Exporters Association (TANEXA)
Executive Director, Mr Mtemi Laurence in Dar es
Salaam on factors which were holding back the
export sector growth.
"Few rich business people have been holding the
lucrative business in agro-products driving out
majority of the emerging small and medium
traders engage the export trading," he noted.
Such monopoly was becoming unhealthy not
only to exporters but largely to majority of
farmers engaging in agriculture activities that
employs over 70 per cent of the population. It is
also playing down government efforts to alleviate
poverty.
The agro-business plays an important role in
export earnings and job creation. Some of the
agriculture products that have fallen trap of the
few business people include cashew nuts,
sunflower and rice in some parts of the country.
Mr Laurence said the presence of few crop
buyers in some regions, Singida which is famous
for sunflower production, Mtwara and Lindi for
cashew nuts, as a typical example of such
monopoly which has been denying farmers gain
premium returns.
The same similar situation is being noticed in
areas of rice production where buyers from
neighbouring countries go directly to producers
due to absence of marketing centres as both
parties could meet.
Also in the case of cotton farmers, they will fail to
compete with best prices in the world market as
they ought to submit to owners of the ginneries
to decide on the pricing mechanisms.
It is high time the government reviewed the
export structure which has complicated
procedures for the small and medium
entrepreneurs taking part in the export business.
The review should go together with the creation
of export awareness on how to trade profitably.