THE warehouse receipt system has played a pivotal role in enhancing the formalisation of agricultural trade across the country, the government has stated.

Dr Selemani Jafo, the Industry and Trade minister, made this assertion at a press conference here yesterday on the successful conclusion of the agricultural trading season for 2024/25 and preparations for the upcoming 2025/26 season.

The system has enhanced transparency, boosted price competition and provided farmers with secure markets for their produce, he stated, noting that in the outgoing season, 14 agricultural products were collected and sold through the system.

These include tea, beans, coffee, cocoa, cashew nuts, maize, rice, cassava, soybeans, sunflower and millet, where for the first time both production and collection saw a remarkable increase, he elaborated.

 A total of 810,230,588 kilogrammes were collected, marking an over 80 percent rise compared to the 2023/24 season, with 451,192,592 kilogrammes collected, he said.

This increase was not only evident in the volume of crops but also in the financial returns for farmers, he said, explaining that as a result of higher volumes and improved market prices, farmers received 2.9trn/-, more than double the 1.2trn/- earned in the previous season.

“The warehouse receipt system has proven highly beneficial to our farmers by ensuring they receive fair prices for their produce in a timely manner, without the interference of unreliable middlemen. Moreover, this formalisation has bolstered the confidence of buyers from outside Tanzania,” he emphasized.

The government works with various stakeholders to improve the system, he said, citing the key stakeholders as including the Warehouse Receipts Regulatory Board (WRRB), the Tanzania Commodity Exchange (TMX), Regional Administration and Local Governments (PO-RALG), the private sector, financial institutions and the Tanzania Trade Authority (TTA).

“We have seen a significant increase in the volume of crops sold through this system, more registered warehouses and a greater number of farmers participating in selling their produce via official channels,” he said.

“This is further proof that the warehouse receipt system remains a powerful tool to ensure farmers benefit appropriately from their efforts,” he stressed, pointing out that local authorities involved in the system had also benefited from increased values.

“Tax revenue rose from 36bn/- in the 2023/24 season to 87bn/- in this now ending season,” he added.