Govt allocates over 500bn/- to address edible oil gap

DODOMA: THE government has allocated more than 500.6bn/- to transform edible oil production as part of a broader plan to eliminate a deficit of about 427,068 tonnes, Agriculture Minister Daniel Chongolo has said.

Speaking at the National Investment Forum on the Edible Oil Value Chain in Dodoma recently, Mr Chongolo said Tanzania requires about 732,974 tonnes of edible oil annually, while current domestic production stands at around 305,905 tonnes.

“We spend more than 200 million US dollars every year importing edible oil. This is a significant amount of money that we can save by increasing domestic production,” he said.

Mr Chongolo said that over the next two years, import permits for edible oil will be issued only to investors directly engaged in oilseed crop production as part of efforts to reduce reliance on imports and boost local output.

He said that after the two year period, only investors involved in farming would qualify to import edible oil.

“After two years, the person who will be allowed to import edible oil will be the one who is also engaged in farming. After four years, an investor will only be allowed to import the quantity that remains in the deficit,” he said.

He explained that after four years, imports would only cover the remaining gap after domestic production had meta substantial share of national demand.

The Minister said the government is implementing various strategies to increase local edible oil production and reduce the large amount of foreign exchange spent on imports.

“Our goal is to fully utilise this strategic opportunity to enable Tanzania to become self-sufficient in edible oil and export the surplus by increasing domestic production and reducing dependence on imported edible oil,” he said.

Mr Chongolo said the Ministry of Agriculture, the Ministry of Industry and Trade and the Ministry of Planning and Investment are working together to ensure the sector expands and achieves its targets.

He said Tanzania must shift from being a nation of traders to a nation of producers by making full use of its land, natural resources and human capital.

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“It is necessary to focus on every area where we have the capacity to increase our efforts because we want to see production rise and industries continue to grow,” he said.

Meanwhile, Agricultural Markets Development Trust (AMDT) Chief Executive Officer Charles Ogutu said Tanzania has enormous potential to increase edible oil production due to the availability of suitable land for oilseed cultivation.

He said the 10-year edible oil industry development plan aims to increase sunflower and palm oil production to achieve self-sufficiency and eventually generate a surplus for export.

Mr Ogutu said low productivity remains the sector’s biggest challenge, underscoring the need for improved seeds, modern technology and better agricultural services to raise farmers’ yields.

He added that implementing the plan will require more than 1tri/- in investment from the government, the private sector and development partners.

The Director General of the Crops and Other Produce Regulatory Authority (COPRA), Ms Irene Mlola, said the government has already begun implementing the strategy through regulations governing edible oil imports and production.

She said the regulations, signed by the Minister for Agriculture in April this year, are intended to ensure that edible oil importers also contribute to expanding domestic production.

Ms Mlola said COPRA will continue assessing the country’s edible oil requirements annually to ensure imports are based on actual demand while safeguarding local investment.

“The goal is to build a system in which farmers are assured of a market and investors become part of efforts to increase edible oil production in the country,” she said.