RATIN

Tanzania: Dar Secures Soybean Market in China

Posted on April, 9, 2021 at 08:26 am


THE government on Wenesday said it has started taking measures to boost soybean production in the country in efforts to maintain the oilseed market in China.

Deputy Minister for Agriculture, Mr Hussein Bashe told the National Assembly here on Wednesday that the country has secured soybean market in China, and that the first consignment was exported in March this year.

Mr Bashe was responding to a supplementary question by nominated MP, Humphrey Polepole (CCM), who wanted to know the measures being taken by the government to increase soybean production after the country secured the market in China.

He said that Tanzania is among 12 countries which have been permitted to sell soybean in China, but the production is still low compared to the demand in the Asian nation.

Polepole said that according to the agreement, Tanzania is required to export 400,000 tonnes annually while the country's production capacity is 14,000 tonnes.

Responding, Mr Bashe said that recently the government reached an agreement with China to export soybean to help farmers secure reliable market for the crop, noting that it has already exported the first consignment of 140 tonnes in March this year.

He said the government has taken various steps to increase production by improving availability of seeds.

"We have tasked Agricultural Seed Agency (ASA) and Tanzania Agricultural Research Institute (TARI) to increase production of seeds ... the government has also allocated fund in the next budget for installing irrigation infrastructure in 13 farms managed by ASA to boost seed production," he said.

He further said that the government has also allowed traders to import soybean from neighbouring countries and re- export them in order to maintain the market as it works to increase production.

Meanwhile, Mr Bashe said that the government through his ministry has started to identify companies which provide agricultural input loans to farmers, including tractors in order to know the kind of service offered to them.

He said the system will help to address challenges facing farmers, including high interest rates and come up with a system that will enable the group to repay their loans based on the income obtained in a specific season.

Mr Bashe was responding to a main question by Nkasi North MP (CHADEMA), Aida Khenani, who wanted the government to change the system of providing agricultural tools loans to farmers because it causes them to incur huge loss due to high interest rate.

Responding, Mr Bashe said agricultural input loans, including tractors are being provided through various systems.

"One of the systems is through the private sector, where companies dealing with farm inputs and tools provide loans direct to farmers through various groups," he said.

He noted that another system is through government institutions such as Agricultural Inputs Trust Fund and Agricultural Development Bank which provide soft loans to farmers compared to private companies.

"Despite having such systems, some farmers fail to access the loans due to high interest rate and other conditions given by service providers," he said.

Source: Daily News