Commodities prices have fallen as the financial crisis continues to take its toll on markets around the world.
A World Bank report shows that prices of various commodities such as coffee, cotton, tea and gold plunged for two straight months.
Tanzania earns forex from exporting mainly agricultural crops.
The report shows that arabica coffee prices dipped to $2.68 a kilo last November from $2.72 the previous month while robusta coffee prices inched to $2 a kilo from $1.95 earlier.
Tea prices (averaged) in auctions of Mombasa, Colombo and Kolkata decreased to $2.03 a kilo last November from $2.36 the preceding month.
In the Mombasa tea auction where many African countries sell their tea, the average price dropped to $1.72 a kilo from $2.22 earlier.
Cotton A index price slipped to $1.21 a kilo last month from $1.37 the preceding month while cotton Memphis price declined to $1.23 a kilo from $1.35.
Cotton prices declined as global crop production rose to 26.9 million tonnes in 2008/09 from 26 million tonnes during the 2007/08 season.
Consumption was expected to reach 27.5 million tonnes, thus reducing global ending-stocks from 11.6 million tonnes in 2007/08 to 11 million tonnes in 2008/09. The gold price decreased to $761 a troy ounce in November this year from $807 in October.
The report says gold prices are expected to remain relatively firm in the near term due to investor concerns about the dollar, energy prices, inflation and geopolitical issues.
While risks are to the upside in the near future, the longer-term gold prices are expected to fall back as high prices discourage demand and stimulate new supplies, it said.
Global mine supply fell in 2007, with South African production declining to about a quarter of its 1970 peak. However, there was strong growth in Indonesia and China, with the latter becoming the world�s largest producer.
Gold is the one commodity in which production ends up in above-ground inventory, with investor sentiment the key determinant of prices.
High prices will restrain physical demand and stimulate new supplies from mines and scrap.
Mine supply is projected to rise modestly, with new output mainly in Latin America, Indonesia, China and Australia, the report added.
