Addis Ababa, Ethiopia, 01/31 - The Ethiopian government has slammed an export ban on all food cereals with immediate effect to stabilise prices on the domestic market.

The ban came in the wake of a sharp increase of prices for grains, the government-run Ethiopia News Agency (ENA) reported Tuesday quoting the Ministry of Trade and Industry.

In line with the ban, the government directed commercial banks and the Ethiopian Customs Authority to take necessary measures to ensure that maize, sorghum, wheat and teff (an indigenous staple grain) would not be ferried out of the country.

Despite increased harvest of the grains in recent seasons, the ministry explained, prices on the local markets had shot up due to the export and smuggling of the food crops out of the country. The ministry asserted that it had the obligation to stabilise the domestic food market and avert a likely pressure on local consummers. Last week, Ethiopia and its international partners, including UN agencies, launched a global humanitarian appeal for emergency food intervention to save 2.6 million lives now surviving on food handouts. Total emergency food requirement was estimated at 339,090 tonnes. Protecting livelihoods and enhancing resiliency to shocks for the vulnerable population, as well as supporting the nutrition and health status of children and mothers were the main objectives, said the joint appeal by the government and its partners. Meanwhile, Prime Minister Meles Zenawi has said that the latest forecast of Ethiopia`s crop production indicated a 15 percent growth during the current 2005/06 fiscal year.

Speaking to the local media at the weekend, Meles also said the situation on the ground indicated that the economy was firmly on track to maintain a double-digit growth this year. According to the Finance and Economic Development ministry, Ethiopia`s economy registered 11.9 percent growth over the past two years. "The nation has reached a stage where it can cover its capital budget," Meles stated, adding that
receipts from exports over the past six months showed a 33 percent rise compared to the same period last year. A greater part of the earnings was from the export of cereals, mainly teff that accounted for 66 percent, oil seeds and spices, he said, but without further statistical elaboration.
(ANGOLA PRESS)