Prime Minister Mwigulu Nchemba has directed that 20 percent of revenue generated from agricultural crops should be invested in building warehouses closer to farming areas to reduce costs for farmers and improve crop trading across the country.
The move is expected to help farmers avoid long-distance transportation of produce, reduce post-harvest losses and increase access to better markets through the Warehouse Receipt System.
Speaking on May 19, 2026, during the 20th anniversary celebrations of the Warehouse Receipts Regulatory Board (WRRB) held at the Jakaya Kikwete Convention Centre in Dodoma, Dr. Mwigulu said the Government is focused on ensuring farmers receive fair value for their crops.
He noted that the Warehouse Receipt System has improved transparency and competition in agricultural trade while protecting farmers from exploitation by middlemen.
“As challenges emerge, the solution is not to return to disorderly trade systems, but to improve the existing system for the benefit of farmers,” he said.
The Prime Minister also officially launched a national awareness strategy aimed at encouraging farmers, traders, cooperatives and financial institutions to make greater use of the Warehouse Receipt System.
Under the new plan, warehouses will be constructed closer to production areas so that farmers can store crops safely and wait for better market prices instead of rushing to sell produce at low prices immediately after harvest.
In another major step aimed at empowering farmers, Dr. Mwigulu said the Government, in partnership with financial institutions, is preparing a mechanism that will allow farmers to receive advance payments using crops stored in warehouses.
The arrangement is expected to reduce dependence on informal borrowing systems that often leave farmers at a disadvantage.
“We want warehouse receipts to help farmers access money while waiting for favorable market prices,” he explained.
The Government is also preparing legal reforms that will allow warehouse receipts and other movable assets to be used as collateral when seeking loans from financial institutions.
Dr. Mwigulu further directed that official weighing systems and approved packaging standards must be used in crop trading, warning against continued use of the “lumbesa” system, which he described as unfair to producers.
“Lumbesa is an outdated practice that disadvantages farmers. Modern trade requires fairness and transparency,” he said.
He also called on banks and other financial institutions to make small loans more accessible to farmers, livestock keepers and small traders so they can expand their businesses through formal financial services.
The Prime Minister announced that the Government will hold a nationwide virtual meeting involving regional and district leaders to assess the implementation of the Warehouse Receipt System and identify solutions to existing challenges.
Earlier, Minister for Industry and Trade Judith Kapinga said the achievements recorded by the Warehouse Receipt System over the past 20 years reflect the Government’s commitment to strengthening agricultural trade under the leadership of President Samia Suluhu Hassan.
WRRB Board Chairperson Geraldine Rasheli said the system continues to improve market access and pricing opportunities for farmers across the country.
Meanwhile, Chairperson of the Parliamentary Standing Committee on Industry, Trade, Agriculture and Livestock, Deodatus Mwanyika said Parliament will continue supporting reforms aimed at improving agricultural productivity and protecting farmers’ interests.
