Browsing: Bonded warehouse

• In its simplest form, the trade in commodities is the modern adaptation of the barter trade system.
• Farmers in Tanzania can choose their cropping pattern based on the spot and futures prices set by the exchange.
• A total of 56,367.5MT of commodities worth $45.6 million were traded through the Tanzania Mercantile Exchange between 2019 and 2021.

We are all familiar with the Dar es Salaam Stock Exchange market, but only a few are aware of the not-so-famous Tanzania Mercantile Exchange(TMX). As the names suggest, the stock exchange involves the trading of stocks while the latter entails the trading of commodities.

In the simplest form, the trade of commodities can be described as the modern adaptation of the barter trade system. It allows for example, farmers and/or middlemen to trade their produce with other producers across the world. By so doing, farmers can exchange (sell) their produce at the highest …

The government of Tanzania is working on a blue print to increase sell of the country’s agro-produce by setting up bonded warehouses in foreign markets in a bid to boost sells.

The bonded warehouses will for starters be piloted in China and Saudi Arabia and are expected to ease access to markets for agro-produce.

Well first things first. What is a bonded warehouse? These are building or other secured areas in which dutiable goods may be stored or even manufacturing without payment of duty.

Bonded warehouses provide specialized storage services such as deep freezers for perishables as well as bulk liquid storage. They also allow for commodity processing and make up an integral part of the global supply chain by giving the importer opportunity to bring in raw goods, process, package and then sell the final product all under one roof with no duty charged.

Further still, bonded warehouses may …