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Farmers to own Commodity Exchange Market

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Farmers to own Commodity Exchange Market

Farmers to own Commodity Exchange Market
July 31
04:54 2015

Local private sector institutions including cooperatives and farmers’ organizations will hold 51 per cent stake in the company established as a vehicle for the Commodity Exchange Market set to commence this year.

The Chief Secretary, Ombeni Sefue revealed the set up of the Tanzania Mercantile Exchange Public Limited Company that has been incorporated for the commodity exchange market, when he opened a high level policy makers’ workshop on commodity exchange operations in Dar es Salaam Wednesday.

He said that the government would hold the remaining 49 per cent of the capital share of the commodity exchange market company. He said the government has already done a tremendous job in the preparation of the trading system where the Tanzania Mercantile Exchange Public Limited Company has been incorporated.

He said it is expected that the commodity exchange market will help farmers overcome challenges of lack of reliable market. He told reports in Dar es Salaam that the system would enable farmers sell their produce at a reliable market at a good and rightful price.

“It is by doing that when our farmers will regard agriculture a business just like other business and make right investment choices,” he said, adding that the system will help turn round agriculture sector and hence fight poverty.

A commodity exchange is a central place where sellers and buyers meet to transact in an orderly and organized fashion, with clearly specified and transparent rules.

A Chief Executive Officer, Capital Markets and Securities Authority (CMSA), Mrs. Nasama Massinda said the country’s “Kilimo Kwanza” initiative will not realize its objectives without a viable and properly functioning commodity exchange market.

CMSA is a secretariat on the preparation of the Commodity Exchange Steering Committee. She said that Tanzania Mercantile Exchange PLC will start with carefully selected commodities which are now operational under warehouse receipt system. She mentioned the crops as cashew nuts, sesame, sunflower and rice. “Other products can be increased as the exchange gains confidence,” she explained.

She said the system will introduce a more orderly and transparent trading, which is important for price discovery, reduces corruption loopholes, increase confidence to the key actors and public in general among other benefits.

One of the participants, Mr. James Shimbe said the system will help improve farmers’ lives. “This is a positive move…we support it,” Mr. Shimbe who is the Director of Regulatory Services, Tanzania Cotton Board, said.

Participants of the two day seminar included top government officials, representative of Tanzania Private Sector Foundation (TPSF), Tanzania Federation of Cooperatives (TFC), and Tanzania Chamber of Commerce Industry and Agriculture (TCC IA) among others.

Source: DailyNews

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Levis Paul

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