TANZANIA Mercantile Exchange (TMX ) is finalizing some procedures with the Coffee Board of Tanzania (CBT) before starting trading coffee soon through the exchange.
TMX , Clearing and Settlement Officer, Eva Msangi, said coffee is one of the oldest crops already traded following auction system and it is from this that the Exchange wants to ensure there smooth trading.
"TMX and CBT have met to clear and reconcile some systems for smooth trading of coffee," said Ms Msangi at the 43rd Dar es Salaam International Trade Fair yesterday.
She added that experts on the systems are currently meeting to look at the ways of accommodating and harmonizing the systems from both TMX and CBT so that trading through the Exchange can begin soon.
Already sesame is being traded through the Exchange with farmers getting market value for their crops and high earnings.
The other crop in the pipeline is maize where TMX experts are finalizing some logistics before starting to trade next month. Some arrangements are being made so that maize can be traded through the warehouse systems.
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 by a team of experts including key farmers awareness creation and other key stakeholders engagement.
The team will also obtain firm maize sell order to enable the launch of trade. The team will also make final arrangements with key stakeholders in maize production value chain including farmers, traders and other market actors before starting operations.
TMX firmly believes that it would achieve its main objective when a Tanzanian farmer would be able to choose his/her cropping pattern based on spot and future prices disseminated by the exchange, rather than the practice of sowing a crop based on current prices.
As an organised marketplace, she said the exchange will provide a platform for buyers and sellers to come together to trade, assured of quality, quantity, payment and delivery.
TMX is designed to provide transparency in commodity auctions and an efficient price discovery mechanism for commodities.