Media Wire Express Correspondent
The government is revamping the payment system by transitioning from the Agriculture Marketing Cooperative Societies (Amcos) to direct payments managed by cooperative unions.
This change, announced by Agriculture Minister Hussein Bashe during his visit to Tunduru District in the Ruvuma Region on September 21, 2024, seeks to address the long-standing issues of delayed payments and lost earnings that farmers have endured during trading seasons.
Historically, cashew farmers have faced challenges when it comes to receiving their payments. The previous system involved buyers depositing funds with cooperative unions after auctions, which were then processed through Amcos before reaching the farmers. This multi-layered payment structure often led to significant delays, preventing farmers from receiving their earnings promptly and in full.
The new payment method, which will be managed through the Central Payment System, promises to streamline this process significantly. The system was successfully piloted last year at the Lindi Mwambao Cooperative Union, demonstrating promising results that have paved the way for its wider implementation. According to Minister Bashe, “Through this system, cooperatives will make direct payments to cashew nut farmers after all necessary deductions,” highlighting the efficiency and transparency of the new approach.
By cutting out Amcos from the payment chain, farmers will now receive their earnings directly from cooperative unions, which is expected to foster a more efficient and reliable payment system. This change aims to empower farmers by ensuring they have immediate access to their earnings, thereby enhancing their financial stability and overall economic wellbeing.
While the government is optimistic about the new system, it also acknowledges that such transitions can encounter resistance and challenges. Minister Bashe emphasized that overcoming initial obstacles is often part of the process, citing the successful nationwide fertilizer subsidy distribution as a model for navigating through these challenges. “Just like with the fertilizer subsidies, we expect some hurdles during this transition, but we are committed to ensuring that farmers benefit from this new system in the long run,” he stated.
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The government’s decision to overhaul the payment system is a response to the urgent need for reforms in the agricultural sector, particularly for cash crop farmers who have historically faced payment delays. This initiative is expected to enhance farmers’ trust in the system and promote a more sustainable agricultural economy.
The government implements this new payment structure for cashew farmers, the focus will be on ensuring transparency and efficiency.
By directly involving cooperative unions in the payment process, the government hopes to create a more supportive environment for farmers, ultimately leading to increased productivity and improved livelihoods across the region.
