Market News

Tobacco farmers have sold 12 million kilogrammes of the golden leaf worth US$21,2 million as the variance between current volumes and last year's deliveries continues to decline.
The current volumes are 62 percent lower than the 32 million kilogrammes of flue-cured tobacco worth US$91 million that had been sold by farmers during the same period last year.
Deliveries to the floors were low during the first days of the season as some farmers adopted a wait-and-see approach, while others who sold their crop were not happy with the low prices on offer.
During the first days of the 2019 marketing season, variance between this year's deliveries and last season was around 90 percent.
The interbank rate is currently at US$1: $3,15.
Latest statistics from the Tobacco Industry and Marketing Board indicate that deliveries are increasing as prices continue to firm.
The statistics show that the average price is at US$1,72 compared to last year's average price of US$2, 76 per kg.
The highest price offered so far since the opening of the floors is US$5,10 compared to last year's US$6,22 per kg.
TIMB corporate communications manager, Mr Isheunesu Moyo yesterday confirmed that deliveries were up at the auction floors.
"Tobacco deliveries have been increasing. We expect a further decline in the variance as we approach the Independence and Easter holidays and as prices continue to firm. Deliveries are also expected to increase as schools open.
"Farmers now have a better understanding and appreciation of the payment modalities hence are more confident to deliver their tobacco," he said.
There have been some improvements in the deliveries by farmers to the auction floors especially after Government scrapped the two percent charge on all transactions.
Tobacco production has been on the increase in the past years with Government coming up with programmes to promote value addition to increase foreign currency earnings through increased export.
The Second Republic's thrust is to develop an infrastructure that supports a thriving and open economy which is capable of creating new opportunities for investors and more employment.
Source: Allafrica.com

Dar es Salaam — Wholesale prices for maize have increased slightly, despite good harvests in the 2017/18 season and adequate supply, the Bank of Tanzania, has said.
In its March Economic Review which was published last week the BoT says the wholesale prices for maize in various regions increased in February this year when compared with the previous month.
The BoT report shows that the average wholesale price for a 100-kilo bag was up by 3.7 per cent to Sh50,811.6 in February, 2019 from Sh49,011.1 recorded in January.
On annual basis the February 2019 price was also 4.7 per cent higher than the Sh48,530.1 per 100 kilo bag reported in February 2018, according to BoT monthly review.
However, the central bank review did not explain the reason for an increase of maize price only saying that food supply remained adequate in most parts of the country following good harvests in the 2017/18 crop-season.
The 2018 maize prices were the lowest in five years in all major cities, with the price of maize flour also going down below Sh1,000 per kilo.
A report by the ministry of Industry and Trade for April 8 showed that the minimum wholesale price for 100 kilo bag of maize in Dar es Salaam was Sh54,000, higher than Sh46,000 recorded in early-December last year.
The Ministry of Agriculture reports shows maize production was 6.2 million tonnes in financial year 2017/18 from 6.6 million tonnes recorded during the previous financial year.
Tanzania's demand for maize currently stands at 5,462,390 tonnes, with a surplus of 810,760 tonnes.
The minister for Agriculture Japhet Hasunga said the price increase was normal at this period of the year due to drought during the vuli rainy season.
"Some areas did not have the vuli harvests due to drought. And so higher demand than supply has triggered the rise in prices, Mr Hasunga said warning that maize could reach Sh100,000 per 100 kilos.
"In many areas now the prices range between Sh45,000 and Sh55,000 per 100 kilos of maize. The government cannot intervene to bring the prices down, because farmers also need slightly higher prices for their produce," he said.
The March 2019 Tanzania's price bulletin by Famine Early Warning Systems (Fews) Network of the USAID has shown that the wholesale price for maize in Dar es Salaaam, Arusha and Iringa were high in December compared with November last year.
The wholesale price for maize in Dar es Salaam city increased to Sh670 per kilo in December from Sh610 reported in November, which is nearly beyond five-year average price.
In Iringa, one of the major country's food baskets, the price of maize has increased to Sh350 in December from Sh300 per kilo in November.
Rise in maize flour prices
The increase of wholesale maize has triggered an increase in the price of flour.
In Dar es Salaam, some retailers are selling maize flour at a price of Sh1,200 per kilo from Sh900 recorded late last month, and Sh800 in July last year.
In Mugumu town, Serengeti District, the price of maize flour has increased to Sh1,200 per kilo from Sh900 while the price for maize has increased to Sh13,000 per 20-kilo tin, up from Sh9,000.
Source: Allfrica.com

WTO members made progress at an informal meeting of the Market Access Committee held on 9 April on improving the operation of the Integrated Database (IDB), which is the main source of tariff and import data at the WTO. The discussion was based on a draft decision that was prepared by the WTO Secretariat with ideas on how to tackle certain issues and update the General Council Decision of 1997 on the supply of information to the IDB.
The WTO's Integrated Database (IDB) is the only database grounded on official data supplied by members on tariffs and import data. It contains data supplied annually on the tariffs members apply on a non-discriminatory basis in line with the most-favoured nation (MFN) principle, as well as their annual imports by tariff line and country of origin. Data on preferential duties under free trade agreements (FTAs) and/or preferential schemes for developing countries are available for some members.
The draft discussed by members consolidates existing rules and procedures which are currently spread across several different documents and decisions, which many members see as one of the main obstacles in complying with the notification requirement to the IDB. The main objective is to streamline the procedures, eliminate terms that have become obsolete (such as "diskettes"), and links to non-existing websites. To this end, it seeks to better explain who must do what and when, including the interaction with other existing notification requirements.
Another important goal of the text is to streamline procedures as much as possible to facilitate compliance by members. The draft decision also eliminates the need to submit some data elements which were no longer considered necessary, seeking to simplify the current requirements and to reduce the burden faced by members in preparing their notifications.
The draft decision also includes some new ideas to take advantage of new technological developments and to align them with other notification requirements. For example, the proposed text would allow members who choose to do so to submit their data by automatically connecting their domestic information technology (IT) systems to the WTO. It also encourages members to try to notify information concerning their preferential trade agreements (i.e. the non-reciprocal preferential schemes in favour of developing countries and least developed countries, such as the Generalized System of Preferences, or GSP) together with their IDB notifications.
The chair of the Market Access Committee, Ms. Zsófia Tvaruskó of Hungary, stressed that members would retain full control of their tariff and import data at all times. As was the case in the 1997 Decision, members would still be able to send revised data at any time, and even to request the removal from the Integrated Database of information already included in the system. In addition, the new ideas, such as the automatic interconnection of IT systems, would be implemented on a voluntary basis.
Members reacted to the proposal in a constructive and positive manner and agreed this is the way forward in terms of streamlining the notification procedure.
Source: WTO

Dar es Salaam — Tanzania is yet to exploit its potential to produce spices for export.mEven data on spices production and demand are hard to come by.
That was known during a meeting of members of the Tanzania Spices Association (Taspa) early this week in Dar es Salaam to formulate a strategy on the produce exports.
Participants said although demand for black pepper, cloves and cinnamon was high in Canada, Spain and United Arabs Emirates, such markets were under supplied.
Taspa and the Tanzania Trade Development Authority have teamed up to collect data for use in strategy formulation for spices exports. Taspa secretary Baraka Masoudi told The Citizen that the meeting was aimed at determining ways of improving spice exports.
"We are scattered; every spice farmer survives on his/her own, which makes it very difficult to collect data. But, through our association, we can start exploring networks to secure more exports markets," he said. According to him, potential buyers want to know the production capacity. The International Trade Centre has embarked on a four-year programme to enhance export competitiveness. The project, which started last year is being implemented in East Africa Community (EAC) and is funded by the European Union. The target is to expand the spice market by 2022.
Nutritionists say because they tend to have strong flavors and are used in small quantities, spices tend to add few calories to food, even though many spices, especially those made from seeds, contain high portions of fat, protein, and carbohydrate by weight.
However, when used in larger quantity, spices can also contribute a substantial amount of minerals and other micronutrients, including iron, magnesium, calcium, and many others, to the diet. For example, a teaspoon of paprika contains about 1133 IU of Vitamin A.
Source: Allafrica.com