Poverty level remains quite high in the country, more so in rural than urban areas. As the Household Budget Survey of 2012 shows, while 10% and 28% of Tanzanians are below food and basic needs poverty lines respectively, the corresponding figures for rural areas are 11% and 33% respectively (URT, 2014). Marketing problems for small-holder farmers, including certain government interventions, their poor organization, and poor value chain development have been identified as among major bottlenecks to farm household incomes. National Food Reserve Agency (NFRA) could potentially provide part of the solution to these problems through its role as an agency for ensuring food security, and through its role as a price, a stabilizer to increase farmers’ income if they buy at relatively higher than market prices that prevail at harvest. The latter role is even more important as many farmers tend to sell their outputs immediately after harvest for immediate cash needs for a variety of needs.
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