Ethiopia lifted the almost year long ban on the export of raw cotton in view of the increase in production this year according to sources.
The decision was passed after a meeting between Mekonnen Manyazewal, Minister of Industry and Tefera Derbew, Minister of Agriculture and representatives from the textile industry last week.
The meeting followed a complaint received by the government from cotton growers who pointed out to excess cotton stored in their warehouses with textile factories purchasing less than the expected quantities.
Figures show that the actual demand for cotton by textile factories has shown an 8,000 ton decrease with a demand of 60,000 tons projected for this year.With just 29% of the 74,471 tons of cotton produced this year having purchased by local textile factories cotton growers are unable to assume that there will be local demand for the 55,000 tons surplus in their warehouses said an anonymous cotton producer.
The demand for cotton decreased because textile factories have leftover cotton from last year according to Esayas Kebede, Director for Agricultural Investment Support at the MoA.
Increase in cotton production particularly due to government initiated programs, to motivate cotton growers and limit exports, in reaction to the cotton deficit last year has also contributed to the surplus of cotton this year.
The decision to lift the ban on exports is expected to relieve cotton growers worried about cotton reducing in quality due to being kept in storage. It will also enable cotton growers to continue doing so for the next harvest year according to an agricultural expert.
Source: Addis Fortune
