Tanzania Cotton Board (TCB) is a parastatal organization which was formed in. 2001 and came into operations in July 2004
The existence of Cotton Board goes back to colonial era when the first cotton board was formed under the British colonial regime in 1952 known as the Lint and Seed Marketing Board of Tanganyika (LSMB).It was formed with specific function of managing the exportation of cotton lint from Tanganyika which was by then exported through Victoria Federation stationed in Uganda. Twelve years after independence i.e 1971, the Tanzania government formed Tanzania Cotton Authority (TCA) which replaced LSMB.
TCA was form as an overall manager of the Cotton industry from production to marketing. TCA executed specific functions which included extension services to farmers, seed cotton buying from the farmers, cotton ginning, and supply of inputs to farmers, lint exportation and oil milling. However, the government abolished the Tanzania Cotton Authority in 1984 and formed Tanzania Cotton Marketing Board. TCMB was entrusted with the function of procuring cotton lint from the Regional Co-operative Union and export to the overseas markets.
However in 1990, the government introduced the liberalization policies in all sector including cotton sub-sector ending the decades of monopoly in cotton business, necessitating the formation of regulatory body to monitor the operation of the private sector. Tanzania Cotton Lint and Seed Board was therefore formed in 1993 after the amendment in the act that formed TCMB through the act of parliament Act “Crop Boards (Miscellaneous Amendment s) Act No 11 of 1993. Liberalization policies had both positive and negative impact on cotton industry though the negative impact outweighed the positive ones. The positive impact of the free market included;
Prompt payment to farmers after selling their cotton. No cotton is sold on credit; all farmers are paid at the point of sale.
Increase in cotton producer price. Before liberalization, producer price was less than 40% of the world price; the scenario changed after liberalization where farmers are paid more than 50% of the world price.
Increase in competition
Increase in investment in ginneries
The establishment of Tanzania Cotton Board (TCB)
Due to deficiencies in the Act that formed Tanzania Cotton Lint ad Seed Board, the function of cotton promotion, input supply, cotton seed multiplication and the cotton production function were not covered by the Act that formed TCLBS.TCLSB function was regulation of the cotton business only.
In addressing the problem of cotton promotion, input supply and seed multiplication, Tanzania Cotton Board was formed by the Act of Parliament number 2 of 2001 which came into operation in 2004.
