He also said that the board and its director general failed to provide solutions to the high cost of fertiliser as well as ensuring that farmers get the farm inputs at low price in line with soil type and on time.
Other issues mentioned was their failure to revive the company as they were required to.
Minister Hasunga made the decision yesterday during the meeting held at TFC offices in Dar es Salaam.
He also transferred the TFC general manager Salum Mkumba to the ministry of Agriculture so that he complete one month of his contract.
The TFC board was appointed on December 1, 2017 with six members including Eng Eli Pallangyo, Nuru Ndile, Rosemary Msabaha, Peter Shao, Dr Kadida Mashaushi and the late Prof Egid Mubofu.
The minister gave a two-week ultimatum for the TFC staff to ensure that 127 containers of fertiliser which are at the Dar es Salaam Port are released and reached farmers across the country.
"We need the fertiliser as soon as possible," he stressed.
He also tasked TFS workers to submit changes in the firm's capital that goes in line with the companies' laws as well as coming up with action plan that shows how they will distribute fertiliser to farmers this year.
The action plan should also indicate ways they can distribute pesticides, seeds and other farm inputs.
Hasunga said that he would send speacial team of auditors to audit the state-run company to establish as to why it failed to execute its duties as expected.
The minister also annulled the appointment of Registrar of Cooperative Societies, Tito Haule, Acting Director General of Tanzania Coffee Board, Primus Kimaryo and tobacco Board acting Director General, Dr Julius Ningu for what he said they have failed to execute their duties.