Digital auction opens new market for maize

RUKWA: MAIZE trading is moving into digital markets after the first online auction of white maize in Rukwa Region sold 335,238 kilogrammes, giving buyers a new way to compete remotely for agricultural commodities.

The auction, conducted recently by the Cereals and Other Produce Regulatory Authority (COPRA) through the Ministry of Agriculture, is designed to improve price transparency, competition and efficiency by allowing buyers to assess produce and submit bids online.

Before the auction, the maize was inspected and tested by SGS for quality and quantity. The tests found aflatoxin levels below one part per billion, while moisture content ranged from 11.32 per cent to 13.17 per cent.

COPRA uploaded the verified quality and quantity data onto the digital auction system, giving prospective buyers information to assess the produce before bidding.

The move could reduce information gaps that have traditionally affected agricultural commodity markets, where buyers and sellers may have limited access to reliable information on quality, quantities and prices.

For farmers and traders, a more transparent auction system could broaden access to buyers and strengthen price discovery. For buyers, verified information and remote bidding could reduce the cost of participating in regional commodity markets.

ALSO READ: Mkombozi Bank pays 2.4bn/- dividend

According to COPRA, the digital system forms part of government efforts to improve access to market information and strengthen quality control, while creating stronger links between producers, sellers and buyers.

“Improving the quality and standards of agricultural produce is important in promoting the availability, expansion and protection of domestic, regional and international markets,” COPRA said.

The auction was organised with the Tanzania Cooperative Development Commission, Tanzania Mercantile Exchange and Warehouse Receipts Regulatory Board, with support from the Rukwa Regional Commissioner’s Office.

Authority said digital maize auctions will continue in other regions, potentially expanding the use of electronic trading in Tanzania’s agricultural commodity markets.