Under pressure from cotton producers and textile factories, the Ethiopian Ministry of Industry is going to set the price for cotton. With a view to stabilize cotton prices in the market, the federal government imported cotton but the move is yet to encourage farmers to produce more and supply to the textile factories at a fair price. While local textile units lament inconsistent prices, which has forced farmers to change their production cost several times, producers too blame the cost of labour, high price of agriculture machineries, uncertainty in market and weather conditions.

Tadesse Haile, State Minister of Industry says it was right for the government to stabilize the cotton market. The government is aware of brokers who set the price of cotton randomly and that discourage textile factories which causes them to incur additional costs. For the purpose of drafting a regulation, discussion is being held with stakeholders and the Ministry.

The regulation is going to prohibit brokers from involving in the delivery line of agricultural products for their interference is impacting the industry. The supply chain of cotton is a long one which results in lower earning by farmers while brokers lap up good profits.

Abreham Tadesse, Vice President of the Ethiopian Cotton Producers, Ginner and Exporters Association (ECPGEA), criticized the federal government for not giving proper attention to the industry. Nearly 250,000 hectares of land is available for cotton plantation while only 10 to 15 per cent of this is cultivated, he argues.