Warehouse receipt system seen successful

THE Minister for Industry, Trade and Marketing, Mr Basil Mramba, has said that many farmers were happy with the warehouse receipt system because it guaranteed them fair payment for their crops.

Under the system, farmers take crops to warehouses belonging to their primary co-operative societies where they are paid 60 per cent of the value of the crop and get the balance later after the sale of the produce.

Mr Mramba said over the weekend that the system proved to be a success to coffee growers in Kilimanjaro, Mbeya, Ruvuma and Kigoma regions. It also worked well to cotton farmers in Manyara and Shinyanga.

He said farmers are not exploited by traders as was the case formerly.

He said the government has also introduced the system to farmers of other crops including maize and rice in Morogoro, Mbeya, Manyara and Kilimanjaro regions.

“Plans are underway to introduce the system to all agricultural crops and the government has decided to implement the system to cashew nut farmers in Mtwara Region effective this season (2007/08),” said Mr Mramba.

“I call upon all traders to buy cashew nut from co-operatives’ warehouses and not other wise,” said Mr Mramba adding that the exercise will avoid farmers from being exploited by traders.