Farmers raise concern over sudden shoot of crop levies
Dar es Salaam. The founder and CEO of Diclukala Co Ltd, Dick Lukala who buys crops from farmers on Thursday said that there has been a sudden hike in crop levies this year, which is proving to be one of the major challenges hurting farmers.
His company buys crops in Malinyi, Mlimba and Ifakara Districts.
He was speaking during a debate on 'innovation and technology conducted by the assistant to the President for Economic Affairs, Dr Blandina Kilama, at the Food Systems Forum (AGRF) conference, which is ongoing in Dar es Salaam,
According to him, he has entered into contracts with 20,000 farmers in those districts to guarantee them a market for their produce and also to help them borrow agricultural tools including tractors.
However, he noted that the variation in crop levies from one district to another which does not benefit farmers.
"Just the other day in Mlimba district, the levy for rice was increased from Sh2,500 per sack to Sh5,000 and a 100 kg sack of rice has increased from Sh3,000 to Sh 5,000,” he said.
"No businessman will accept to bear those costs, at the end of the day the farmer who is supposed to sell one kilo for Sh2,000 will sell for Sh1,900.
Mr Lukala said, that each time the government raises its levies, it hurts the low-income farmer." Lukala said the levy for animal feed (livestock) has increased from Sh300 to Sh2,000.
Noting that in Malinyi district, the levy for corn has increased from Sh2,500 to Sh 4,000. He said that the costs were increased without informing stakeholders.
"These things are not shared with us, we are only tasked to pay the levies, but the affected person here is the farmer who will have to pay levy costs on every kilo of his produce, at the end of the day if he were to sell a kilo for Sh2,000 he will have to sell for Sh1,900," he said.
Adding, "This meeting (AGRF), will have a great meaning if governments will come up with a system that will benefit farmers, especially small farmers," he said.
In addition, he advised that the government grant should provide seeds and pesticides to farmers instead of only fertilizers.
For his part, the Chairman of the Private Sector Institute (TPSF), John Ulanga, advised the government to put in place systems that will enable investors to invest in companies with innovative ideas.
"As we look after children under the age of five, so should we nurture young companies with innovative ideas, for example, the government can come up with a policy that provides some relief to supermarkets, which sell products of small entrepreneurs," he said.
He advised young companies to develop a system that will attract capital and know-how including products and marketing, so that they can fulfil their dreams.
