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Agriculture budget offers ray of hope for farmers

Agriculture minister Hussein Bashe in Parliament

What you need to know:

  • The financial plan also apportioned Sh 150 billion as a subsidy package for fertiliser to cushion farmers from the effects of the World’s commodity price upsurge.

Arusha. The Agriculture Council of Tanzania (ACT) has greeted, what it termed, as an ambitious agriculture budget that inspires hope and leads from the front.

Addressing a press conference here over the weekend, the ACT Chairperson, Ms Jacqueline Mkindi said if entirely implemented, the historic budget, will have a far-reaching impact in unlocking the full potential of a key economic sector.

“We are so happy that at last the government has addressed historical injustice on agriculture sector through the huge budget, reinforcing our hope to unleash the sector’s enormous potential” Ms Mkindi, said adding:

“Farmers are humbled and overfilled with joy because the budget is going to improve productivity, reduce farming cost, open up the potential markets and empower them to be able to reap the benefits of their brevity as the budget intends to boost their income.”

Ms Mkindi who doubles as the TAHA CEO, extended sincere appreciation to the Minister of Agriculture, Mr Hussein Bashe, his deputy, Mr Anthony Mavunde and permanent secretary for the ground-breaking budget.

“An upsurge of the budget close to 158 percent, with a lion share of package being routed to finance research, irrigation schemes, extension services, infrastructure development, seeds production and subsidize fertiliser, is what making the budget so unique” ACT boss explained.

Indeed, the 2022/23 agriculture financial plan tabled by the Minister Bashe has increased to Sh 751 billion up, from Sh 290 billion in 2021/22, equivalent to nearly 158 percent rise.

As part of the national strategy to mitigate the negative impact of climate change in food production, the irrigation component will enjoy substantial allocation from Sh 46.5 billion in 2021/22 to Sh 361.5 billion in 2022/23, equivalent to 677 percent swell in its latest bid to expand the area under irrigation from 727,280 hectors to 822,285 ha, equivalent to 68.5 percent. The national target is to hit 1.2 million ha under irrigation in 2025.

“This substantial investment in developing irrigation infrastructures by the government will certainly mitigate the impact of climate change in the food production and guarantee food security” Ms Mkindi noted.

The financial plan also apportioned Sh 150 billion as a subsidy package for fertiliser to cushion farmers from the effects of the World’s commodity price upsurge.

ACT commended the government for its resolve to continue expanding local, regional and international markets for crops after successfully managed to unlock South African, Indian, France and Middle East sprawling markets and improve market access information systems.

The private sector was also impressed by the government plan to brand its crops destined for export in its latest initiative to protect originality.

Ms Mkindi said that the government strategy to build a number of common use facilities to operate as a one-stop centre for various crops en-route to various markets in the World will cut storage costs incurred by the exporters.

“We are encouraged by the government plan to spur horticulture industry to grow its export value to $2 billion in 2030, up from the current $779 million per annum” she noted.

“I’m indebted to thank the Ministry of Agriculture for embracing private sector in its ambitious drive to attain green revolution” Ms Mkindi explained, adding: “Special thanks for the ministry’s profound conviction that the green revolution is inconceivable without a dynamic private sector serving and driving agriculture, farming and agri-food value chains”.

ACT leader made a passionate call to the government to disburse the entire agriculture budget in timely manner in order for it to be implemented effectively to bring about green revolution.

The ACT is satisfied by the great efforts by the President Samia Suluhu Hassan in promoting Tanzania as investment destination, particularly, in her recent foreign trips in Belgium, France, and United Arab Emirates (UAE) where she attracted investors and as a result, a number of investments in agriculture and market access deals have been sealed.