The Ministry of Trade and Regional Integration has issued a directive requiring all payments for export crops produced under contract farming and investment farming arrangements to be processed exclusively through the Ethiopian Commodity Exchange. The circular, issued on December 3, 2025, will take effect on December 10, 2025, and applies mainly to oilseeds and pulses.

Under the new framework, exporters are required to deposit the full value of purchased crops into a pay-in account designated by the ECX. Following a joint written request from the exporter and the producer, the ECX will transfer the funds to the supplier’s pay-out account on the next working day. This mechanism links payment directly to officially registered and verified product volumes.

The directive revises earlier rules that allowed exporters and suppliers to settle payments directly after crops were weighed at ECX facilities. By routing payments through the exchange, the government aims to address gaps that previously limited effective oversight of financial transactions related to export farming.

The updated arrangement introduces a more structured approach to contract and investment farming, aligning payment settlement with ECX’s existing verification and record-keeping processes. It is also intended to improve consistency in export data, reduce disputes over payments, and ensure that producers receive funds in a timely manner.

According to the ministry, the measure forms part of broader efforts to strengthen regulation of export trade, limit informal practices in agricultural marketing, and improve foreign exchange management in key commodity sectors.

Source: Capital Ethiopia Newspaper