Tanzania: Government Commends Warehouse Receipt System

THE government has said a warehouse receipt system (WRS) for selling crops is the best because it incorporates other crops.

Among the crops that have successfully yielded positive results in the new system include cotton, according to Minister for Agriculture Japhet Hasunga.

Speaking at his Dodoma offices, the minister said cotton would equally from now on be procured through the warehouse receipt system.

Under Section 22(1) of the Warehouse Receipts Act, 2005 each applicant for a licence to operate a warehouse should have a certificate of insurance -insuring all commodities which are or maybe in such a warehouse for their full market value for loss by fire, theft, burglary, arson or any other cause.

The warehouse operator will make complete settlement to all depositors having commodities stored in any warehouse, damaged or destroyed within 10 days after settlement with an insurance company.

The WRS currently is in almost all regions in the country.

According to Mr Hasunga, the crops under the WRS include cashew nuts, cotton, coffee, maize, rice, sesame, sunflower and pigeon peas.

The move to ensure that crops are sold through the WRS aims at boosting the agricultural sector and is in line with the government's pledges to farmers.

Equally, Mr Hasunga said this was one of the initiatives aimed at making farmers benefit from agricultural activities and address challenges that had been facing them for many years.

According to the minister, since the inception of a new system, many farmers especially from the southern parts of the country producing cashew nuts have benefited much from the system.

"For this system to be professional and efficient, we need to have cooperative unions of the crops under the new system," he noted.

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