TMX’s online commodity trading boost prices of green grams, sesame

31Aug 2021
The Guardian Reporter
Dar es Salaam
The Guardian
TMX’s online commodity trading boost prices of green grams, sesame

ONLINE commodity trading introduced by Tanzania Mercantile Exchange has boosted prices of green grams and sesame which have almost doubled since last year.

A snapshot of a TMX online commodity trading website displaying on a desktop.

An Assistant Analyst at TMX, Goodluck Mahatma said in Dar es Salaam last week that online trading has also enabled local commodities to get clients globally. “Online trading has also increased transactions between Tanzania and other countries which buy our commodities,” Mahatma said.

He said the advent of the coronavirus since last year has meant that physical trading of commodities globally was suspended while major importers of the country’s green grams and sesame such as India went into several lockdowns to curb the Covid-19 surge.

“Prices for green grams have increased from between 400-700/- per kilogram to 1,300/- while those of sesame have gone up from between 1,630-1,930/- per kilogram to 2,800/-,” he said adding that Indian has remained the largest single importer of the commodities.

Mahatma further noted that online trading and communication has also made it easier to get local farmers produce and supply global markets.  “Through the use of online trading, TMX was able to connect with farmers across Tanzania easily which led to an increase in commodities supplied while global prices appreciated due to inadequate supply caused the Covid-19 outbreak,” he noted.

Due to growing demand by local farmers and global market, TMX has been forced to create online platforms easily accessed by stakeholders across the country. “The online commodity trading has also reduced the farmers’ dependence of the government and its agencies as major buyers of the commodities,” the TMX Assistant Analyst added.

“Currently, TMX and Ministry of Agriculture are working together to create a mobile application for farmers that will allow them post their commodities in stock so that consumers in China and India can see and place orders,” he explained.

The application will also allow farmers to get payment easily through SimBanking, Internet baking ad mobile money platforms including Airtel Money, TigoPesa and M-Pesa. “TMX hopes that this application will help farmers adopt modern technology use in facilitating selling of their commodities other than depending on traditional methods. This will also reduce the government expenditure while increasing revenue from commodity trading,” he stated.

TMX was incorporated on 25th August 2014 to perform the business of a commodity exchange in Tanzania. It has been established as a public private partnership company with its four founding shareholders being Treasury Registrar, TIB Development Bank, Public Service Pension Fund (PSPF) and Tanzania Federation of Cooperatives (TFC). TMX Plc is regulated by Capital Markets and Securities Authority under the Commodity Exchanges Act, 2015.