The nations of Tanzania and India have mutually agreed that avocado to be exported from Tanzania will not be burdened with any import duty. Other competitor countries, especially those from Latin America, which are also exporting their avocado to India, will continue facing a slim import duty of at least 30 per cent.
According to Agriculture Minister Hussein Bashe, the friendly incentive was an important economic opportunity which should wisely be used by Tanzania. He stated: "Tanzania has snatched a lucrative avocado market in India and we have so far started to export. Through our long-standing bilateral ties, India has agreed to offer us an incentive scheme of free import duty contrary to our competitors.”
He challenged the local farmers to use the incentive door effectively through improving their production scope in order to stand a better side to benefiting accordingly.
Tanzania is the third largest avocado produce in Africa, after South Africa and Kenya. Between 2015 and 2018 annual production rose from 20,000 tons to 190,000 tons. Moreover, according to the Tanzania Private Sector Foundation (TPSF), in 2018 Tanzania exported 7,551 tons with a total value of USD 8.5 million to Europe, Africa, and Asia. However, despite being endowed with key potential for the cultivation of the crop, the country has yet to optimally benefit from the sub-sector.
Source: ippmedia.com