Tanzania to include groundnuts into Warehouse Receipt System to safeguard farmers
Mpanda District Council's Head of the Agriculture, Livestock and Fisheries Department in Katavi Region, Gwalusajo Kapande (right), inspects processed groundnut products exhibited by farmers from the district during the Nanenane Agricultural Exhibition at the John Mwakangale Grounds in Mbeya. PHOTO|SADAM SADICK.
Mbeya. Mpanda District Council in Katavi Region plans to include groundnuts in the warehouse receipt system next farming season to boost crop prices, protect farmers from middlemen, and add value through local processing.
Speaking on Tuesday, August 4, 2026, at the Southern Highlands Nane Nane Agricultural Exhibition in Mbeya, council’s head of agriculture, livestock and fisheries, Mr Gwalusajo Kapande, said enrolling groundnuts into the system will guarantee market certainty and crop security.
He explained that because groundnuts were excluded from the warehouse system for long periods, unscrupulous traders exploited farmers by setting prices arbitrarily, despite groundnuts being a strategic commercial crop in the district.
"We have already initiated value-addition procedures by processing groundnut oil. Last farming season we had only three processing machines, but currently we have over 11. That is why we resolved to partner with the Crops and Produce Regulatory Authority (Copra) to place this crop under warehouse receipts," said Mr Kapande.
He noted that groundnut production reached 6,450 tonnes this season, surpassing the council's target of 5,300 tonnes, while market prices rose from Sh3,200 to Sh4,000 per kilogramme.
To maintain output quality, the council allocated over Sh8 million to purchase 2,000 kilogrammes of improved seeds for distribution to farmers next season.
"We also have a strategy through the District Security Committee, under the District Commissioner, to curb middlemen and fraudulent buyers. Our goal is ensuring groundnuts maintain high value to uplift farmers," added Mr Kapande.
Local farmers welcomed the move, with a member of the Kusyakiza farmers' group, Mr George Menas, saying local oil extraction has transformed groundnut farming into a major economic booster.
Similarly, the Kibifuye farmers' union secretary, Mr Fidex Philimon, said the warehouse receipt system will eliminate exploitative middlemen and secure structured markets.
"It will give us direct market access, ensure productive quality, and stop buyers from dictating prices at farm gates. We fully support this government strategy," said Mr Philimon.
