Tanzania is facing cotton marketing problems owing to the current trade war between US and China. As a result, the price of cotton has decreased, which is a growing concern for farmers. Acknowledging the ongoing crisis, the Tanzanian Government is taking precautionary measures.
Marco Mtunga, Director General, Tanzania Cotton Board (TCB) confirms the volatility in the domestic market and is establishing a mechanism to ease the effects of cotton pricing. On the other hand, farmers are reluctant to sell the produce at invariable low prices.
Decrease in interest rates for loans by banks involved in cotton value chain is one of the remedial measures being suggested to solve the ongoing crisis. However cotton stakeholders reveal that if immediate steps are not taken, the sub-sector will suffer immensely and face bleak future.
The Tanzanian Cotton Board (TCB) has sought revival of textile industries in the country in order to fully capitalize from domestically produced cotton.