Posted on November, 28, 2018 at 11:10 am
TANZANIA Mercantile Exchange (TMX) has started maiden trade, linking buyers and sellers with an order for 3,000 tonnes of maize.
The exchange will deliver the first batch of 100 tonnes while testing for quality and other logistic issues.
TMX Chief Executive Officer Godfrey Malekano said currently the exchange links farmers with buyers to institute trust of warehousing crops in Njombe and Kilolo before rolling over to other maize growing regions.
“This is the initial stage of the exchange that links the two but will later start trading at the floor after farmers are comfortable and familiar with the trading system,” Mr Malekano told the ‘Daily News’
yesterday.
The CEO said the exchange wants both parties to transact at a win-win situation without one shortchanging the other.
“What we are doing now is also part and parcel of the commodity exchange—linking buyers and sellers.
“And before embarking on trading from the floor, we will continue to look for maize markets,” Mr Malekano said.
Speaking during the agriculture stakeholders’ workshop, an Agriculture Expert of TMX Mr Kahama Kadilio said a customer whom he did not identify, had placed an order for 3,000 tonnes.
The trader will start by paying 100 tonnes of maize.
“We have received the order of 3,000 tonnes of maize from the customer. However, he will pay for 100 tonnes first for quality tests,” he said.
If the maiden trade goes as planned, the remaining 2,900 tonnes will be delivered to the customer.
Mr Kadilio said he was confident on the quality of maize, saying the produce is tested before being stored at specified suitable conditions.
“We (TMX) have experts who test the qualities of the products, measure and advice traders and buyers before the deal is sealed at the market floor,” he said.
TMX expects to start with maize owing to availability of the required infrastructure especially certified warehouses.
However, lack of storages, transportation and awareness are still posing serious challenges to smooth take off of the exchange and reaching more armers and suppliers.
Agriculture Council of Tanzania (ACT) Chairman Dr Sinare Yusufu Sinare said currently there are 40 recognised storages of various crops in the country.
“Storage is a key aspect for TXM operations. There should be huge storage in every district and small centres where farmers can store their products before reaching the markets,” he said.
According to TMX, the two warehouse operators have been licensed by the Warehouse Receipt Regulatory Board (WRRB) to operate in maize growing areas in Iringa and Njombe regions.
The licensing and implementation of warehouse receipt system in maize paves way for maize trading on the exchange as farmers and farmers groups will now be able to deposit their maize in licensed warehouses and issued with warehouse receipts.
Maize trading on the exchange will be followed by tea, peas, sisal, tobacco and livestock after finalisation of value chain analysis and other necessary preparations, including raising farmers’ awareness.
Source: Daily News