ADDIS ABABA- New agricultural export commodities are becoming instrumental in redressing the Nation’s foreign exchange shortage, disclosed Ethiopian Commodity Exchange (ECX)
Hailemichael Hailu Market Research and Extension Department Head at ECX told The Ethiopian Herald that Ethiopian agricultural export commodities like soybean and chickpeas are currently gaining a wide range of acceptance in the international market and generating a good deal of foreign currency as the Ethiopian coffee trade continued to spread in the US.
According to him, streamlining agricultural export commodities through ECX is playing a crucial role in terms of reducing illegal trade, maintaining transparency when it comes to market price and product quality.
He also noted that currently the agricultural commodities trade is covering almost half of the Nation’s trade exchange. As a result, it is allowing the government to appropriately collect the tax from the trade exchange of agricultural products, which have been dominated by regular or traditional exchange system for a very long time.
He said that the new Ethiopian agricultural export commodities are gaining acceptance in the international market for their organic quality.
Meanwhile, “there is still much to be done in improving quality and quantity of products. We are doing our level best effort to raise the awareness of farmers and value-chain actors focusing on world standards related to agricultural export commodities exchange,” noted Hailemichael.
Furthermore, ECX has been engaged in modernizing the trade system applying different and value-adding exchange systems including the E-auction trade system. It takes the hustle out of the old traditional trade and allows sellers gain fair price and buyers receive the commodities on the right time. “In the traditional trade system 100 to 200 people may engage in the exchanges. But the E-auction connects thousands of buyers and sellers at once at a global level. The system has solved the physical constraint of the old systems,” he said.
The National exchange currently has reached 1.5 billion USD per anum through ECX. ECX, E-commodity Exchange Authority and the National Exchange Actors Association are the major stakeholders engaged in the modern commodity exchange system throughout the country.
Kassahun Bekele President of the National Exchange Actors Association stressed that all stakeholders should take seriously that structured modern commodity exchange is the only option and solution for the enhancement of the Nation’s agricultural commodity exchange.
According to him, the exchange system has shown a remarkable development as it transited from an interfacing and outcry trading platform to an electronic trading platform.
Hailemikael said the exchange capacity of the electronic trading system is 500 times greater than the old systems.
The Ethiopian Herald July 21/2019
BY HENOK TIBEBU
