The Ethiopian Ministry of trade banned 16 coffee exporters from trading on the Ethiopian Commodity Exchange (ECX) this month. The exporters were banned for failing to have their stock audited by the ministry.
The banned traders are said to include some known for high volumes of trade on the exchange according to MOT officials.
The Ministry of Trade sent a letter to the Ethiopian Commodity Exchange Authority prohibiting the traders from selling or buying on the trading floor for an unlimited length of time. The ban only prohibits trading in coffee and has no limits on other commodities.A letter was sent to the Ethiopian Commodity Exchange Authority (ECEA), with the list of the banned traders, not to allow them from buying or selling on the trading floor for unspecified time. The ban only prevents the traders from buying coffee on the trading floor. It does not stop them from either buying or selling other commodities.
A total of 57 exporters have been banned from the exchange. It is to be remembered that Coffee exporters found in breach of the hoarding directive were banned by the Ministry of Trade.
Storing 500 tons and above without a contract for legally export will cause an offender to be banned from the Commodity’s exchange for three months while stocks between 54-500 tons result in a two month bans according to the directive issued by the Ministry of Trade.
Exporters found with stored Coffee in excess of the levels established in the directive will be severely punished according to Yacob Yala State Minister of Trade.
Source: Addis Fortune