The Bank of Tanzania (BoT) monthly economic review on world commodity prices, however, shows that the average world market prices for selected agricultural and non-agricultural commodities increased with the exception of Robusta coffee and crude oil.
Since January, this year, the price of coffee has been increasing with February clocking a significant price increase. Currently, a 50kg bag of clean coffee is ranging between 125 US dollars to 240 US dollars.
Tanzania is rated as Africa's fourth largest producer of coffee after Ethiopia, Uganda and Cote d'Ivoire.
The country is expected to produce more than 60,000 tonnes of coffee this year, with the Tanzania Coffee Board (TCB) expecting the rising prices to be incentives to small scale producers, to enable them increase output to reach the target of 80,000 tonnes by 2016.
According to the BoT monthly report, other agricultural products like cotton fetched high prices mainly due to strong demand from textile manufacturers. The price of cloves headed north following a decline in stocks in consuming countries particularly India and Indonesia.
The increase in price of cloves was largely due to low production in major growing countries such as Indonesia, Madagascar and the Comoros, following unfavourable weather condition.
Similarly, tea for which Tanzania is among the major producers attracted handsome prices due high demand from Sri-Lanka and Vietnam, while the price of sisal remained unchanged at 1,400 US dollars per metric ton.
The period under review also saw the prices of crude oil and white petroleum product declining mainly due to weak demand coupled with increased supply in the North Sea and Libya.
During the same period, the price of gold increased to 1,244 US dollars per troy ounce largely due to increased demand for gold as a safe investment.