The Oromia Trade Bureau gathered the officers of the Zonal Office in Adama City and announced that it had issued a directive ordering flour mills to grind 60% of the wheat they buy and hand over the remaining 40% to wheat exporters.
The zonal trade offices should send a letter informing the flour mills of the choice.
It is well known that flour mills are having trouble getting their hands on wheat products since the government declared that it had finished making ready to start exporting wheat.
This happened as a result of the farmers in the RC and Bale zones, which are known for producing wheat, being forced to sell one quintal of wheat to the unions and the farmers for 3200 birr.
Grain traders who were busted transporting wheat assert that their vehicles are being impounded and that they are being detained by the checkpoint.
It is asserted that flour mills sell 40% of the wheat they buy to exporters at no additional cost, excluding the cost of transportation.
The owners of flour factories who were contacted by the Ethiopian Trade and Investment Forum claim that the directive is irrelevant. “We have a license to make flour, not to sell wheat, so that’s the first thing. Second, we can work because we borrow money from the bank and pay interest. If we buy wheat and sell it at a loss, who will pay the bank interest?” He said.
They expressed worry that the directive in question, which is difficult to control and implement, would open the door for corruption.