TFC calls for review of commodity boards

DODOMA: THE Tanzania Federation of Cooperatives (TFC) has called for a review of the operations of commodity boards, saying some regulatory practices have affected the ability of cooperative societies to effectively market members’ produce and maximise farmers’ earnings.

Presenting the cooperative movement’s position during the climax of the 2026 International Day of Cooperatives celebrations in Dodoma on Monday, TFC Chairperson, Tito Haule, said some commodity boards have moved away from their original role of supporting the growth of cooperatives.

“Although the government established these boards with good intentions, some of their practices have created challenges for cooperative societies by allowing intermediaries to operate in marketing systems that were initially designed to strengthen cooperatives,” Mr Haule said.

He said the cooperative movement was established to enable farmers to collectively market their produce, improve their bargaining power and reduce dependence on intermediaries.

“The cooperative system has historically served as a strong vehicle for collecting and marketing members’ produce under one institution, making our country one of Africa’s strongest cooperative economies during the early years of independence,” he said.

Mr Haule said cooperative societies have also expressed concern over statutory levies imposed on produce marketed through cooperatives, arguing that such charges reduce farmers’ incomes and weaken the financial capacity of cooperative institutions.

Referring to the Cereals and Other Produce Regulatory Authority (COPRA), he said some cooperative members have raised concerns over levies imposed on produce marketed through cooperatives while private brokers continue to participate in functions traditionally undertaken by cooperative societies.

“We believe there is a need to review the operations of commodity boards to ensure cooperative societies remain at the centre of collecting and marketing members’ produce while allowing the government to continue collecting legitimate taxes and levies,” Mr Haule said.

He also called for a review of statutory levies to protect farmers’ incomes and improve the competitiveness of cooperative societies.

The federation further expressed concern over the lack of reliable markets for strategic crops, including coffee, cashew nuts, cotton, tea and tobacco, saying fluctuations in international prices continue to affect production and farmers’ earnings.

Mr Haule also raised concern over the two per cent deduction imposed on funds remitted to government-based Savings and Credit Cooperative Societies (SACCOS) through the Treasury system.

“These funds belong to members and, in many cases, have already been subjected to statutory deductions. Additional charges reduce the capacity of SACCOS to provide financial services to their members,” he said.

He further appealed to the government to address delays by some employers, particularly local government authorities, in remitting members’ deductions to SACCOS.

“We urge the government to ensure employers comply with the law so that SACCOS can continue serving their members effectively and sustainably,” Mr Haule said.

Meanwhile, the Registrar and Chief Executive Officer of the Tanzania Cooperative Development Commission (TCDC), Dr Benson Ndiege, said the commission will intensify implementation of the Protect Cooperatives, Choose Integrity campaign during the 2026/27 financial year to strengthen accountability and restore public confidence in the cooperative sector.

“We will continue promoting integrity, accountability and good governance practices to ensure cooperatives remain strong and sustainable institutions that contribute to national development,” Dr Ndiege said.