MARKET DEVELOPMENT
Ethiopia: Companies Allowed to Import Palm Oil
Ethiopia: Companies Allowed to Import Palm Oil
05/08/2015 (AllAfrica.com) - The Addis Ababa City Administration Trade Bureau said that the palm oil which used to be imported by solely Merchandise Wholesale & Import Trade Enterprise (MEWIT) is replaced by local private companies. The Bureau signed a Memorandum of Understanding with private companies and Cooperative Unions yesterday at the Hager Fikir Theatre.
Deputy Bureau Head Gemechis Melaku said that the government has been subsidizing sugar, oil, wheat and flour to stabilize the market. Considering the economic impact of allowing private companies to import edible palm oil and due to the decrease of its price in the international market, private companies are allowed to lead the provision and distribution of palm oil equitably, he added.
He also said that while MEWIT shifts to engage in other development endeavours, the four private tradings will distribute palm oil to the people through more than 100 Cooperative Unions and help stabilize the market in a sustainable manner. The unions and tradings will work in unison in the provision, he noted.
According to Gemechis, to permanently solve the shortage of palm oil in the city, the City Government has allocated 7.5 million litres of palm oil to the city by increasing 1.6 million litres to the previous 5.9 million. The importers will start serving the people as of the beginning of August 2015.
Marketing Core Process Head with the Bureau Mulushewa Bekele urged the Cooperative Unions to work with the private companies to create an efficient and equitable distribution service of the product for the people.
Entrusting the interface agreement, Unions and traders drawn from the 10 sub cities said on their part that the transfer of the license of importing palm oil to the private investors will help the market proceed smoothly. It also simplifies access and distribution of the commodities to the public.
The Bureau also indicated that as the selling price of the oil will be fixed and announced every three months to be valid for the same period. It has also been indicated that 75 per cent of the imported oil will be packaged in two or three litre containers. The importers which have signed the deal are Alsam Group PLC, Belayneh Kindie Import and Export, Alle Bejimla and Ahaf Import & Export.
Deputy Bureau Head Gemechis Melaku said that the government has been subsidizing sugar, oil, wheat and flour to stabilize the market. Considering the economic impact of allowing private companies to import edible palm oil and due to the decrease of its price in the international market, private companies are allowed to lead the provision and distribution of palm oil equitably, he added.
He also said that while MEWIT shifts to engage in other development endeavours, the four private tradings will distribute palm oil to the people through more than 100 Cooperative Unions and help stabilize the market in a sustainable manner. The unions and tradings will work in unison in the provision, he noted.
According to Gemechis, to permanently solve the shortage of palm oil in the city, the City Government has allocated 7.5 million litres of palm oil to the city by increasing 1.6 million litres to the previous 5.9 million. The importers will start serving the people as of the beginning of August 2015.
Marketing Core Process Head with the Bureau Mulushewa Bekele urged the Cooperative Unions to work with the private companies to create an efficient and equitable distribution service of the product for the people.
Entrusting the interface agreement, Unions and traders drawn from the 10 sub cities said on their part that the transfer of the license of importing palm oil to the private investors will help the market proceed smoothly. It also simplifies access and distribution of the commodities to the public.
The Bureau also indicated that as the selling price of the oil will be fixed and announced every three months to be valid for the same period. It has also been indicated that 75 per cent of the imported oil will be packaged in two or three litre containers. The importers which have signed the deal are Alsam Group PLC, Belayneh Kindie Import and Export, Alle Bejimla and Ahaf Import & Export.