Agriculture financing policy in offing, says Bashe

DODOMA: MINISTER for Agriculture, Hussein Bashe said the first-ever agriculture financing policy will soon be in place as the government is committed to ensuring capital is accessible in the sector to make it active and effective for economic growth.

Speaking over the weekend at the cotton stakeholders meeting, Mr Bashe said the government is working on the incentives package for increased productivity and a competitive and vibrant industry.

He told the participants that drew key partners in regional and district commissioners in the cotton farming areas, farmers, ginnery owners and cotton dealers among others that President Dr Samia Suluhu Hassan has a political will to see the agriculture industry proper, thus, they must capitalise on the opportunity.

Mr Bashe said the finance ministry has finalised the agriculture financing policy saying within one week will be read for stakeholders’ inputs before being affected.

“We need a stand-alone agriculture policy, banks have been looking at the sector as high risks which is not the case because of the loan defaulters less than five per cent come from the sector,” said the Minister.

The minister said that accessing loans in the agricultural sector is a challenge thus the policy will increase the value chain as it stands alone from other groceries.

He said the government works around the clock to avert uncalled for challenges in the cotton industry for increased productivity by ensuring that research is conducted for quality seeds and inputs, availing extension services, and having the needed infrastructure and financing.

As for incentives, they have been awarding tractors to the best farmers saying starting 2024/25 financial year, the government will be channeling 10m/- and 5m/- monthly for the Regional Commissioner and District Commissioner for close monitoring and supervision of the agriculture projects in their respective areas.

Also, the ministry will set a budget for fuel for extension officers to reach the farmers in their location since they have been given motorcycles.

“The ministry has decided to support the regional and local authorities to develop the sector by working as a team to reach the set goals,” said Minister Bashe.

On his part, the Cotton Development Trust Fund Fund (CDTF) Planning Officer said the ministry of Finance has verified and endorsed the payment of suppliers’ debts worth 71.69bn/- for various services to the fund.

He told the forum that the government has also agreed to pay cotton buyers a loss amounting 24.41bn/- which they incurred during the 2019/20 farming season.

Mr Kulaya said as of September 2023, the government through CDTF has made payment of 9.46bn/- to suppliers and 20bn/- to cotton buyers in a fresh bid to revamp the cotton sector.

The Director General of the Tanzania Cotton Board, Marco Mtunga said there is a tendency where farmers to fault the farming acres compared to the actual farming area during the exercise to distribute the agricultural inputs.

They discovered the cheating during the exercise to evaluate the actual agricultural inputs needed so that the government could plan accordingly.

He gave an example of the Igunga District in the Tabora Region where they informed the authority that the cotton grown is 90,609 acres but when they went for verification they found out that 72,695 acres were fake.