Exportation-Tanzania - Red tape in issuance of export permits for tea and coffee products has denied local traders business opportunities as well as the country's foreign earnings. This was revealed in Dar es Salaam over the weekend by the National Sales Manager of Afri Tea and Coffee Blenders (1963) Limited, Mr Ramadhan Katundu in an interview over the performance of the sub- sector. "A number of local traders have expressed determination to export coffee and tea, but have been discouraged by bureaucracy in obtaining permits," he said. However, the Director of Coffee Quality and Promotions with the Tanzania Coffee Board (TCB), Mr Primus Kimario said that it was not true that there were setbacks in getting permits for exports. "What we have introduced are strict guidelines that require an exporter to provide all the necessary information before the permit is issued," he said.

He said that the idea is to curb-substandard exports as a way to maintain quality standards in the international markets.

He said failure to put in place strict rules will create a room for exporters to misuse the offer and finally paint a bad picture on Tanzania's coffee in the world market.

Mr Katundu said some unscrupulous traders are now engaged in the smuggling of raw coffee to some neighbouring countries which have direct access to Western and Asian markets.

He said there is a growing demand for tea and coffee products among the East Africa Community (EAC) markets as well as Europe and Asia. He said that a friendly environment in exports could create more employment opportunities and improve foreign currency earnings.

Mr Katundu said it is high time for the government to intervene by plugging loopholes in illegal exports of raw coffee and tea to stabilize prices of the two crops.

"There is a growing black market for Tanzania's raw coffee in Uganda leading to shortage for the local packers," he said.

Such incidences of illegal exports are rampant in Kagera Region which borders Uganda as well as Kilimanjaro which shares border with Kenya.

Tanzania Daily News/24/10/2011