Tanzania reviews tobacco production costs in a bid to enhance productivity

DODOMA: THE Tanzanian government has initiated a comprehensive review of tobacco production costs aimed at identifying areas that require improvement in order to enhance efficiency and productivity within the agricultural sector.

Speaking in Parliament in Dodoma, Deputy Minister for Agriculture David Silinde said the assessment includes an examination of various factors contributing to high production costs for farmers, including interest rates and banking charges applied to agricultural loans.

Silinde explained that the exercise also involves financial institutions, including banks that provide loans to farmers through different financing mechanisms, with the aim of obtaining a clear picture of the financial burden affecting tobacco growers.

The statement was made in response to a question from the Member of Parliament for Ushetu Constituency, Emmanuel Peter Cherehani, who inquired about government measures to reduce various levies affecting tobacco farmers, particularly bank deductions and loan-related costs.

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According to Silinde, the government is continuing to implement strategic interventions to improve tobacco farming in the country, including increasing production and productivity while reducing production costs in order to boost farmers’ income across the entire value chain.

The assessment is viewed as part of a broader agricultural reform agenda, where financial efficiency and input costs are considered key determinants of the crop’s competitiveness in the global market.