‘Beef up food reserve’
THE Parliamentary Budget Committee has advised the government to bolster the financial capacity of the National Food Reserve Authority (NFRA) and the Cereals and Other Produce Board (CPB) to build up substantial food reserves.
The post ‘Beef up food reserve’ first appeared on Daily News.
- Bunge commitee says climate change may affect yields
THE Parliamentary Budget Committee has advised the government to bolster the financial capacity of the National Food Reserve Authority (NFRA) and the Cereals and Other Produce Board (CPB) to build up substantial food reserves.
The recommendation is based on the warning issued regarding climate change, which could affect agricultural activities in 2024 and 2025.
The remarks were made on Friday by the Chairman of the Parliamentary Budget Committee, Oran Njeza, Mbeya Rural MP while presenting the Committee’s report on the National Development Plan proposal for the 2025/26 fiscal year and the proposals for the guidelines for the preparation of the national plan and budget for the year 2025/26.
While Tanzania has managed to keep its inflation rate within the EAC’s target range, he cautioned that the country should remain vigilant against potential future shocks. “The global trend of inflation is a cause for concern,” said Njeza.
“While Tanzania has performed relatively well, we must be vigilant in safeguarding our economy from external shocks such as fluctuations in global oil prices and the impacts of climate change.”
The committee’s recommendation, he said is underpinned by the observation that food and beverages constitute a significant portion of the consumer basket.
By ensuring adequate food reserves, the government can stabilise prices and protect consumers from the adverse effects of inflation.
He said that for East African Community (EAC) member states, inflation rose to an average of 16.9 per cent in 2023, compared to 8.3 per cent in 2022.
Only Tanzania, Kenya and Uganda maintained inflation rates within the Community’s target range of 3.0 per cent to 7.0 per cent annually.
“In Tanzania, inflation stood at 3.2 per cent in 2023/24, compared to 4.7 per cent in 2022/23, a level that is within the national target of 5.0 per cent and aligned with regional economic integration goals,” MP Njeza told the House.
ALSO READ: Food vendors urged to innovate for increased income
MP Njeza further said that the government should take necessary measures to reduce inflation, considering the risk of rising oil prices in the global market by 0.9 per cent, equivalent to USD 81 per barrel.
He suggested initiating a strategic oil reserve plan to enable the country to purchase oil when prices drop and use it when prices rise.
“This advice from the Committee is based on information from the Organisation of the Petroleum Exporting Countries (OPEC) and other non-member countries, including Russia,” Njeza said.
He added: “The government should establish a strategy for producing food crops with high demand in the global market.
This recommendation stems from the fact that in the basket of goods, services and nonalcoholic beverages account for 28.2 per cent, which is higher than other products.”
The global inflation trend shows that inflation has declined from an average of 8.7 per cent in 2022 to 6.7 per cent in 2023. Moreover, global inflation is expected to decrease to an average of 5.9 per cent in 2024 and 4.4 per cent in 2025.
In developed countries, inflation decreased from 7.3 per cent in 2022 to an average of 4.6 per cent in 2023. Additionally, inflation in these countries is expected to decline from 5.8 per cent in 2024 to 4.4 per cent in 2025.
The post ‘Beef up food reserve’ first appeared on Daily News.