Ministry of Trade and Regional Integration (MoTRI) lifts restrictions imposed on the supply of the stimulant leaf, khat, from eastern Ethiopian producers to the local market.
The ministry which undertook a detailed study to implement its restrictions on the way to tackling the illicit khat trade imposed a system to limit the locally sold product supply which came to effect on January 2023.
In the new system, the product sourced from eastern Ethiopia, which is a long established hub for production of the stimulant and market for the export commodity faced limited supply which led to a lot of contraband activities to ensue.
In a bid to settle the issue, MoTRI has now issued a letter which has been sent to the Customs Commission, to relinquish the applied restrictions as from April 21.
As per the system that was applied on January 27, 2023, it emplaced a quota for the supply of local market on the aim to boost the legal export market and to make farmers beneficiaries of the trade.
However, the latest announcement stated that the system has created a repercussion on farmers’ market.
“Due to that the government has decided that the scheme that was applied in January must be lifted starting from April 21,” the letter that was signed by Kassahun Gofe, State Minister of MoTRI, reads.
It added that as per the decision the khat export trade system and a quota of daily consumption at border areas are now to be carried out as per the prior ways of doing business in contrast to the system imposed in January.
Khat products from eastern Ethiopia that is popularly known as Hararge khat, which is mainly supplied to Somalia and Djibouti consumers.This product is arguably one of the major hard currency resources for the country, while in the past few years the market and revenue was disrupted due to illegal activities.
Those who abuse the trade are smuggling khat to bordering countries, while the commodity was predestined to be originally sold for local consumption.
To curb the recently emerging challenges, MoTRI has now introduced several controlling mechanisms and taken legal actions including revoking export license for some of the traders who are alleged on the involvement of illegal activity.
However the case is still said to pose a challenge and has had its toll on the hard currency generation from the sector.