Farmers earn record TZS 2.3 trillion through warehouse receipt system

 

By The Respondents Reporter

Farmers received a record TZS 2.298 trillion through Tanzania's Warehouse Receipt System (WRS) in the 2025/26 financial year, underscoring the growing role of structured commodity markets in improving farm-gate prices and access to reliable buyers.

The Warehouse Receipts Regulatory Board (WRRB) said the volume of produce traded through the system rose by 43.6 percent compared to the previous year, as more farmers embraced warehouse-based marketing and digital commodity auctions.

Speaking in Dodoma on July 31, WRRB Chief Executive Officer Asangye Bangu said a total of 1.122 billion kilogrammes of nine crops were sold through auctions conducted by the Tanzania Mercantile Exchange (TMX), up from 781.6 million kilogrammes recorded in 2024/25.

The commodities included cashew nuts, sesame, coffee, cocoa, pigeon peas, lentils, green grams, soybeans and tea.

"The increase shows that more farmers continue to trust the Warehouse Receipt System as a secure and profitable channel for selling their produce," Mr Bangu said.

The sales generated more than TZS 61 billion in crop cess revenues for local government authorities, while the total value of trade conducted through the system reached TZS 2.679 trillion.

The Warehouse Receipt System allows farmers to store produce in certified warehouses and sell through organised auctions, a model designed to improve price discovery, reduce post-harvest losses and strengthen farmers' bargaining power.

According to WRRB, the system is now operational in 23 regions and covers 18 commodities and products, a significant expansion from 2006 when it was introduced with cashew nuts as the only commodity traded.

The government allocated TZS 950 million during the 2025/26 financial year to strengthen information technology infrastructure, improve warehouse inspections, support farmer awareness campaigns and enhance operational efficiency.

WRRB's own-source revenue has also increased sharply, rising from TZS 1.998 billion in 2023/24 to TZS 5.87 billion in 2025/26. 

The growth enabled the regulator to finance more than two-thirds of its annual budget from internally generated funds.

The board estimates that activities linked to the system created 31,875 jobs across commodity collection, warehousing, transportation, quality assessment and related services during the year.

In a move aimed at broadening the model's impact, WRRB plans to extend the Warehouse Receipt System to the livestock sector in 2026/27. The first livestock auction under the framework is expected to be held in Mvomero District.

Mr Bangu said preparations are also underway to incorporate additional products, including seaweed, hides and skins, and horticultural produce, once policy and operational requirements are completed.

The regulator will further invest in digitalisation by upgrading the Warehouse Receipt Management System (WRMS) and the WRS Management Information System (WRS-MIS), while integrating licensing, inspection, trading and payment services into a single platform.

WRRB is also working with the Bank of Tanzania, the Tanzania Agricultural Development Bank (TADB), NBC and other financial institutions to expand access to warehouse receipt-backed financing, allowing farmers and livestock keepers to obtain credit without immediately selling their produce.

The expansion comes as Tanzania seeks to strengthen agricultural value chains, improve market access and increase incomes for producers through formal commodity trading systems.

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