CEREAL MARKETING LIBERALIZATION IN TANZANIA

There is considerable evidence that cereal market liberalization in Tanzania has been a success in spite of poor roads, shortage of capital and vehicles, and lack of market infrastructure and standardized measures. The legal status of the private sector is unclear, however, and public sector policies still favour a heavy official involvement in the marketing system. Farm-gate prices for maize fall off rapidly as one moves away from the primary marketing centres, but on-farm storage of maize poses farmers no insuperable difficulties. Successful implementation of liberalization calls for clarity and consistency in government policy, the reform of financial services, the sale of unused storage capacity to the private sector, the more active involvement of farmers in the liberalized system, the strengthening of extension services, and a policy for regulating interannual price variations.