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Prices of cotton rise as coffee prices fall, says BoT
2005-06-25 07:31:45
By Moris Lyimo
Prices of cotton rose last January because of an increase in demand in China as well as a low supply associated with concerns about the effects of tsunami on cotton in Asian countries.
At the same time, there was also an increase of coffee prices because of a decline in global supply following the biennial cycle, the current edition monthly economic review issued by the Bank of Tanzania (BoT)indicates.
During the same period under review, prices of tea and sisal remained unchanged, while that of cloves declined on account of decline in demand from the Indonesia.
The bank review also reports the highest prices of crude oil and white petroleum products to the previous month largely because of concerns of supply distributions as the result of increased insurgency in Iraq prior to the elections.
On the contrary, the prices of gold fell from the price level in December last year partly because of the strengthening of the US dollar against other major currencies.
Meanwhile, the total value of export goods during the period was $117.3 million being lower than $162.5 million recorded in the previous month.
Earnings from traditional exports declined by about 23 per cent to $34.0 million dollars while receipts from non-traditional exports totaled $ 83.3 million being 29.5 per cent lower than it was in the preceding month.
The decline in non-traditional exports was largely reflected in minerals and manufactured goods and the decline in traditional exports was a manifestation of ending of season for most of traditional exports.
Exports volume of coffee fell by 12.7 per cent, cotton 30.4 per cent and cashew nuts 82.5 per cent .
The decline in export volume of cashew nuts is also associated with the reluctance by farmers to sell the crop to private buyers at low price.
At the beginning of the season, the Tanzania Cashewnuts Authority set the price at 750/- a kilogramme for grade one nuts and 600/- a kilogramme for grade two nuts while private buyers were ready to buy at 350/- and 250/- per kilogrammes respectively.
As for manufactured goods, there was a modest increase in exports of textile apparel, cement, footwear, salt, iron and steel and plastic items.
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