Part of the strategy to boost export of agricultural commodities for the budget year is following a different approach with khat which was never encouraged or discouraged in the past. But, the commodity has been incremental in fetching export revenue. For instance, last year Ethiopia raked USD 297 million from this commodity improving up on the USD 271 million it brought the year before.

Following the failure of the major agricultural export commodity in Ethiopia – Coffee – last year and the year before that, which recorded USD 718 and 746 million in these two periods, this year the government’s strategy seems to be shifting to look into commodities like khat and oil seeds. Oil seeds on its part is a big part of the new target set for agricultural commodities. Oil seeds is expected to improve to USD 724 million from USD 642 million it was able to bring in the last year. Furthermore, the government has announced plans to improve trading systems in eastern khat growing regions of the country.

The promising stability in neighboring Somalia was seen as a positive condition for promoting khat in the current fiscal year.

The strategic plan to expand khat in Somalia and other neighboring countries would also help the export become more competitive with potential suppliers in the region, the plan detailed.

Khat is one of the widely used stimulants across Eastern Africa often labeled as a “mild-narcotics”.

As the government seeks more foreign currency from agricultural produce the coming year commodities such as coffee, sesame, and oil seeds, khat are still dominant export commodities bringing in a significant amount of foreign currency to the country. Planning to get USD 2.5 billion from the agriculture products in the current fiscal year, the government looks to be firm on increasing quantity as well as quality of exports commodities that Ethiopia offers to the international market. As a result, coffee export is expected to jump to 235,950 metric ton and fetch USD 862.5 million in time under consideration.

Timber has also become a successful export item since some years back, and this year as well the export for timber is expected to be 20,383 metric ton and earn USD 2.5 million. In addition, the government is also looking into live animal exports sector to which is expected to earn some USD 222.2 million in the period. It is to be remembered that, last year, the total expected revenue from the agricultural export sector was about USD 2.1 billion, part of which were not realized since coffee – the major agricultural export commodity in Ethiopia – was going through a tough time.

Source: The Reporter