FAO Supports ECX to Trade Wheat

Addis Ababa (ENA) February 16/2023 The Food and Agriculture Organization (FAO) has donated 2.5 Million Birr to support the effort in incorporating wheat at modern trading system and providing warehouse receipt financing services with funds received from Italian Cooperation Agency, the Ethiopian Commodity Exchange disclosed.

With the financial support of FAO, the Ethiopia Commodity Exchange (ECX) is striving to incorporate wheat to this modern trading system, the statement said.

The commodity exchange spent the released fund to carry out major activities that are pertinent to contract development, stakeholders' deliberation, awareness creation programs, producing educational and communication materials and the like, it was learned.

Accordingly, this indispensable support of FAO helped to realize the plan of the Exchange in order to secure all the preparations to launch the wheat trading into the ECX system.

When ECX starts trading wheat, farmers and suppliers can deposit the commodity at nearby warehouse of the Exchange's 25 branches that can be extend to more sub-branches using the unions facilities, benefit from the fast and reliable clearing and settlement system, get real-time market information on wheat trade and allowed to warehouse receipt financing system to get short term loan.

Wheat was one of the two products traded when the Commodity Exchange operated 15 years ago, the statement recalled, adding that based on the national effort to enhance production and productivity it is now back to the platform.

.