Assessment of ant-competitive practices in tobacco leaf market The case study of Tanzania

This study assessed -ant – competitive practices in tobacco leaf market in Tanzania. In order to accomplish the study, the research employed exploratory research design and survey strategy whereby sample for the subject were selected from Morogoro, Iringa, Tabora and Dar es salaam to represent Tanzania .Anti-competitive practices in Tobacco leaf market affect adversely the economy, sector competitiveness and tobacco leaf grows. This study intends to identify and assess anti- competitive practices in connection to competition policies and principles in Tanzania through identification of ant-competitive practices, determining impact of pricing policy and determining impediments to the to the tobacco leaf market in Tanzania. Theoretical and emperical literature reviewpointed out that cartel was a major and dominant theory responsible foranti- competitive practices in the tobacco leaf market, specificall trade association conducts, market concentrations and growers abuse by dominant firms. This study used questionnaires and interviews to collect primary data from the selected respondents within two categories, namely tobacco leaf growers and policy and marketing institutions. Descriptive statistics analysis was conducted with the help of qualitative and quantitative techniques to get an in depth understanding of ant- competitive practices in the tobacco leaf market as provided by the respondents. The findings of this study revealed that tobacco leaf market structure in Tanzania is prone to competition concerns, which postulate that buyers in the tobacco leaf market are engaging in ant –competitive practices. This study has exhibited significant elements of cartel in the tobacco leaf market. An evidence of price fixing, among others were clearly pointed out which is contrary to competition principals inferential test trough one sample t-test indicated price fixing in tobacco leaf market is significant i.e.000 which is less than 5%The study conclude that, tobacco leaf market is prone to anti-competitive concerns whereby tobacco leaf buyers are routine offenders of competition law by practicing cartel conducts against the market. Therefore the study recommends the following: the government should enhance tobacco regulatory frame work to eliminate regulatory capture and entrenchment of vested interests in the sector which constrain competition, separate dual role played by tobacco leaf buyers, market regulatory institution responsible for competition should cooperate with their counterparts in enforcing cross border anti-competitive partices, further studies on tobacco market should be carried out and finally , academic institutions should develop comprehensive academic programmers on competition economics and law with the view of improving competition knowledge and skills in Tanzania