TANZANIA: THE warehouse receipt system is vital for enhancing the agricultural sector, providing farmers and traders with a reliable means to secure financing, manage their produce and facilitate trade. By allowing producers to store their commodities safely and issue receipts as proof of ownership, this system helps reduce post-harvest losses and ensures that farmers receive fair prices for their goods.
Thus, the Warehouse Receipts Regulatory Board (WRRB) plays a crucial role in implementing this system, fostering transparency and efficiency that can significantly boost agricultural productivity and economic stability.
And the WRRB achieved over half of last year’s total storage volume in the first quarter of this fiscal year, driven by farmers’ increasing awareness of storage solutions. The Board warehoused 485,924.8 tonnes of crops worth 1.3tri/- in 2023/24 while in first quarter of 2024/25 stored 265,793.8 tonnes of agri-goods valued at 1.08tri/-.
The shift reflects a deeper understanding of the benefits that storage solutions, under warehouse receipt, offer, enabling producers to manage their crops more effectively and reduce spoilage.
The WRRB Executive Director, Mr Asangye Bangu told the ‘Daily News’ with better access to efficient storage facilities, farmers are now able to store their produce longer, enhancing market readiness and profitability.
“The understanding of the system and market certainty has contributed to push up storage capacity.
“As farmers reap the benefits of improved practices, their enthusiasm for productive farming intensifies, driving a notable increase in overall production, hence warehouse storage,” Mr Bangu said when presenting the first quarter report to the Parliamentary Standing Committee for Industry, Trade, Agriculture and Livestock.
The report showed that Mtwara, Lindi, Ruvuma, Mbeya and Coastal regions led in the value of stored products alone accounting for 79 per cent of the total value. The remaining 21 regions in the mainland share 21 per cent.
Mtwara led in accordance to the value of the stored Agri-goods at 906.96bn/-, Lindi came second with 880.87bn/- Ruvuma 276.52bn/-, Mbeya with 253.01bn/- and Coastal 211.83bn/- in 2023/24.
WRRB report shows that between 2021/22 and 2023/24, cashew nut warehouse sale led list commanding a lion share of 56 per cent, followed by sesame at 25 per cent, coffee at 8.0 per cent, pigeon peas at 5.0 per cent and cocoa and other products making up the remaining 3.0 per cent.
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“This indicates a diverse agricultural portfolio that is crucial for economic stability,” he said.
Despite these achievements, Mr Bangu also named several challenges the board faces in effectively executing the warehouse receipt system. Key issues include resistance from stakeholders benefiting from unofficial systems, a lack of resources and modern technology and limitations on the system’s implementation in certain regions, all of which hinder overall efficiency and productivity.
“Addressing these challenges will be essential for maximising the benefits of the system and ensuring a more efficient agricultural sector in the country,” Mr Bangu said.
Additionally, seven regions have been slow to engage with the system due to their focus on perishable goods. However, the board believe it is important to involve all farmers to enhance productivity and increase both household and national income.
“The regions, including Arusha and Kilimanjaro, are out of the WRRB bracket due to the nature of the agricultural activities they engage in,” he said.
The Executive Director said that warehouse receipts provide benefits not just to farmers, but also serve as a significant source of income for the council, which collects up to 3.0 per cent on each kilogramme sold through this system.
The Parliamentary Standing Committee for Industry, Trade, Agriculture and Livestock visited Morogoro to see how the warehouse receipt system is benefiting farmers in the area.
The visit aimed to gather insights on the impact of the system on agricultural practices and the overall livelihoods of farmers in Morogoro.
The Committee Chairperson, Mr Deodatus Mwanyika encouraged farmers to cooperate with the WRRB to
