Prices for sesame and white pea beans at the Ethiopian Commodity Exchange (ECX) have jumped 25 percent and 35.7 percent, respectively, in the past two weeks, Fortune reported.
Sesame exporters attribute the price hike to rumors of shortage of the commodities in the international market, according to Fortune.
The price of sesame per quintal stood at 3,600 birr before the price hike, now the price has climbed to 4,500 birr on the ECX trading floor.
On Wednesday, November 20, 2013, and Thursday, November 21, 2013, the price showed a slight ease, according to Fortune.
The primary export destination for Ethiopia’s sesame is China, followed by other Middle Eastern countries.
White pea beans is also another commodity to see the unexpected price hike at the ECX floor. The price per quintal of white pea beans which ranged from 1,400 birr up to 1,500 birr before the price hike, has now reached 1,900 birr.
A quintal of white pea beans last year sold for between 800 birr to 900 birr, according to Fortune.
For the ECX, however, the price hike is not a surprise. The current price trend of the two commodities is as a result of the production season. November is the time for the entrance of new production, but at this time it is common to face some shortages in supply for a limited period of time, says Abenet Bekele, chief strategy officer at the ECX.
In the previous fiscal year, Ethiopia exported 215,000 tons of sesame, 83,000 tons of white pea beans. The two commodities appeared at the ECX trading floor two years ago.
Source: Fortune
