Ethiopia bans grain exports

Jan 30, 2006 (ADDIS ABABA) — Ethiopian government on Monday indefinitely banned the export of all grain products in a bid to stem huge price hikes blamed on political instability, smuggling and the rising cost of transportation and fertilizer.

“The export of indigenous grains, including the staple grains, like teff, maize, sorghum and wheat will be suspended indefinitely,” the Ministry of Trade and Industry said.

“Inflated prices on these grains may have an impact on the consumer, and the ministry is duty-bound to stabilize the market for the good of public,” it said in a statement.

The ban was announced as domestic prices have jumped 10- to 20-percent over the past four months, driving up the cost of a 25-kilo (55-pound) bag the country’s main staple grain — teff, used to make Ethiopia’s trademark spongy injera bread — from 120 birr to 160 birr (14 to 19 dollars, 12 to 16 euros).

Teff is a kind of grass native to northeastern Africa, which is used both as a cereal crop for humans and to feed animals.

Despite a searing drought that has hit the southeast and east of the country, harvests in other parts of the Ethiopia were up last year, contributing to a rise in smuggling of grain to arch-foe Eritrea, as well as to Kenya, Somalia, Sudan and Yemen, the ministry said.

Legal grain exports to several European and Asian countries as well as Israel, Zimbabwe and Zambia will be affected by the ban.

Traders and consumers offered a variety of reasons for the surge in prices ranging from lingering political tensions following disputed elections last year that have led to a crackdown on the opposition and rising fuel and fertilizer coasts.

“We have enough grain but the transport cost has increased and the production cost has risen because of price of fertilizer,” grain trader Gorfu Belay said.

“I think some people are hoarding grains,” said Melaku Tedla, a shopper at one Addis Ababa market who echoed the sentiments of others who said retailers were stocking up on grain, particularly teff, given the current political conditions.

(ST)