The Ethiopian Commodity Exchange (ECX) is preparing to start a system that enable farmers get loan from banks using their products stored in its warehouses as collateral.
In a press briefing he gave today to journalists, the CEO, Wondimagegnehu Negera in connection to the performance of the concluded budget year and this year’s plan, said that the commodity exchange is working to modernize its services.
Enabling farmers to get access to finance using products that they stored in the warehouses of ECX is among the major plan for the current fiscal year.
According to him, the new system is aimed to help farmers improve their working capital and help the commodity exchange increasing its customers.
Testing the new warehouse receipt system will be started soon on farmers who supply maize in the Bure and Nekemte branches of the commodity exchange.
The commodity exchange also planned to include niger seed and cotton into the system.
The commodity exchange has also plan include green mung bean and red apricot to the mandatory trading system, in which products are allowed to be transacted only through the ECX, he said.
The CEO said the commodity exchange has set target to transact about 788,970 tons of products amounting to 35.6 billion Birr in the current fiscal year.
Over 681,845 tons of products amounting to 33.8 billion Birr was transacted through ECX during the concluded fiscal year.