The Ethiopian Commodity Exchange (ECX) is waiting for an endorsement by the council of ministers to start trading in red kidney and green mung beans in its mandated market system. Coffee, sesame and white pea beans are among export items sold solely on ECX’s mandated market; exporters cannot buy these crops outside of ECX’s markets and neither can farmers sell them to exporters on other platforms.
The endorsement, expected to receive approval in the coming two weeks, will see the number of crops sold in the mandated market rise to five.
The high demand and attractive prices offered for red kidney and green mung beans in export markets and availability inlocal markets are some of the prompts for ECX to contemplate including the items on its special marketing platform of agricultural products.
Tewodros Assefa, ECX Communications Head, told Capital that the addition of the two commodities onto the marketing platform will discourage the widespread illicit trading of the commodities in cross-border areas.
“We hope that these corps will soon be traded by ECX. They have been exported illegally and traded in the local market for many years and we understand that the commodities will bring in more money for the farmers and the country, if exported.”
The Communications Head also believes that the commodities will enjoy high demand, similar to white pea beans. It is ECX’s aim to “provide proper market information dissemination to red kidney bean producers”, according to Tewodros.
Around 3.1 million quintals of red kidney beans is produced per annum from Oromia, Amahara, and Southern Nations, Nationalities, and Peoples’ Region, destined for export to Pakistan, Kenya, India, Russia, Djibouti, Somalia, Sudan, Yemen and South Africa.
Meanwhile, green mung beans are produced mainly in Amhara region – currently bringing to market 140,677 quintals per annum, often for export to United Arab Emirates, France and Kenya.
In related news, ECX started the eTRADE platform on July 2015 and has already traded coffee worth half a billion birr with the new online system.
“People are now preferring our eTRADE platform, which saves their time and energy and we have seen the platform increase our efficiency to a surprising magnitude,” he added.
Compared to the old Open-Out-Cry, which required people to meet physically, the new system has increased the transaction capacity of ECX by 5,000 fold.