Monday, June 17, 2024

Mung bean gains traction on ECX


The increasing price of Mung bean becomes the new wave for the Ethiopian Commodities Exchange /ECX/ as local production and international demand and market price increase exceeding the price of sesame.
The Mung bean market is currently being driven by numerous factors which include its numerous health benefits, population growth, changing dietary habits and new market opportunities which have resulted on ECX trading it highly.
Now, the price of Ethiopian Mung bean is fluctuating than before due to normal production and demand factors.
“The reason as to why it has garnered interest is because the Ethiopian production of Mung bean is non GMO which makes it preferable in the global market,” emphasized Wondemagegnehu Negera, CEO of ECX, adding that, “the global growing of the demand for Mung bean is the other factor.”
In 2020/21 trade year, ECX has traded 30,000 metric tons of Mung bean which valued 1.2 billion birr. “One of the big factors for the trade is the international trade competition between China and America, which in perspective increases the Ethiopian trade, in the overall market scene,” stated Wendmagenehu.
In the year 2020/21, The Ethiopian Commodity Exchange (ECX) traded 614,586 metric tons of products at a cost of 39.6 billion birr. According to the commodity exchange platform, the stated number is 96 percent of the target in value while it is 102 percent of the target in cost.
From the stated number, coffee accounted for 35.5 percent of the market while sesame took 31 percent and other grains account for 33.4 percent of the market share.
In terms of financial performance, the GDP earned a total of 775 million birr has been generated from operating and non-operational sources in the 2020/21 budget year, which is up 106 percent from the target. This is an increase of 20 percent compared to the same period last year.
The total expenditure was Birr 517 million, an increase of 14 percent over the same period of last budget year 2019/20. Also the number has shown that the profit is 15 percent higher than expected.
With regards to tax, a Holding Tax of 756 million birr; VAT 847 Million Birr from Domestic Coffee Traders; 60 million birr from VAT was collected by the Commodity Exchange and a total of 1.7 billion birr tax has been collected and transferred to the government.
This year, 68,391 quality certificates were issued by inspecting the quality of the products offered for sale. With ECX’s secure payment and delivery system, more than 10,000 buyers and suppliers’ bank accounts have been successfully connected to 17 banks.
In the just completed year, Ethiopian Commodity Exchange has opened a special marketing window for agro-processing industries also during the fiscal year; pigeon, bean sprouts and pinto bean were added to the trading system.
The problem faced by the commodity market during the last fiscal year was the smuggling and illegal trade, although efforts are being made to prevent it. The trading platform affirmed that it will continue to intensify its efforts to prevent illegal trade, as the products that are traded in the commodity market can still be smuggled to neighboring countries.
For the coming year ECX has signed a memorandum of understanding (MoU) with the Ministry of Mines and Petroleum (MoU) to start trading of opal, safari and emerald minerals in the 2021/22budget year.

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