TANZANIA – The Tanzania Mercantile Exchange (TMX ), the commodity exchange in Tanzania, has unveiled that it is finalizing procedures with the Coffee Board of Tanzania (CBT) that will see it commence coffee trading.
TMX Clearing and Settlement Officer, Eva Msangi, said that introducing the coffee in the commodity exchange will ensure seamless trading of the commodity- which is already traded using auction system.
“TMX and CBT have met to clear and reconcile some systems for smooth trading of coffee,” said Ms Msangi at the recently held Dar es Salaam International Trade Fair.
She added that the Exchange is also engaging experts on mapping out a strategy for accommodating and harmonizing the systems from both TMX and CBT that will see trading through the Exchange commence soon.
Currently the Exchange trades sesame which according to a Daily News report, has seen farmers with farmers reap more fortunes from cultivating the crop reflected by high earnings they have fetch in the past.
TMX is also set to launch maize in the platform and is currently streamlining its logistics systems before starting to trade the commodity, which is scheduled for August this year.
The Exchange has also embarked on several other inventions that will see maize being traded through the warehouse systems. The exchange will also obtain firm maize sell order to enable the launch of trade.
TMX has deployed a team that will make engage key stakeholders in maize production value chain including farmers, traders and other market actors before starting operations.
Tea, peas, sisal, tobacco and livestock have also been earmarked for launch in the platform after finalisation of value chain analysis.
TMX seeks to ensure profitability amongst farmers by encouraging cropping pattern based on spot and future prices disseminated by the exchange, rather than the practice of sowing a crop based on current prices.
As an organised marketplace, Ms Msangi said the exchange will provide a platform for buyers and sellers to come together to trade while assuring the actors of quality, quantity, payment and delivery.
She added that TMX is designed to provide transparency in commodity auctions and an efficient price discovery mechanism for commodities.