Ethiopia: Farmers endure market sabotage, inflation, and price disorientation as government wheat export story takes news headlines by storm

Wheat

Ethiopia

Published May 16, 2023

Tridge summary

For outside onlookers, when Prime Minister Abiy Ahmed officially unveiled the country's plan to export wheat to neighboring countries from products in Bale zone, announcing the plans to export of 32 million quintals of wheat on the day, it presented a spotless spectacle.

Original content

Bale, Robe (Oromia)- PM Abiy made the remarks during his visit to the scene on 12 February. "We have fulfilled what we promised our people and today we have made Ethiopia's wheat export dream a reality. It is testimony that we dream big; say what we dream; do what we say, working day and night, and show what we have done after completion," he boasted. No sooner than the announcement, wheat prices shot through the roof, trading at 4,700 birr per quintal, up from 3,200 birr the previous day. While the instant price hike is the immediate reaction, however, economists, farmers and observers have been arguing the wheat market sabotage among stakeholders has resulted in shortage of supply and skyrocketing of price, long before 12 February, and after the government's decision to intervene in the market to buy wheat products from farmers at a pre-set prices and export to foreign countries, in what came as a bid to resolve the dire shortage of hard currency the country is facing. The ...

Source: All Africa