Ethiopian govt may ban cotton exports

October 21, 2010 (Ethiopia)

A proposal to ban raw cotton exports had been drafted by the Ethiopian Textile Industry Development Institute (ETIDI) and in all likelihood, the Ethiopian government is planning to impose the ban. The textile sector has been insisting on banning exports of raw cotton for the main reason that domestic demand for the white gold has outstripped the supply, and if it runs short, cotton will have to be imported by spending valuable foreign exchange. However cotton exporters are up in arms and have raised concerns over the proposal as they have already taken orders from international clients and if the ban was to be imposed, it would mean reneging on commitments. Another viewpoint put across by experts is to add value to the raw cotton in Ethiopia itself rather than exporting cotton, as it will help generate seven times more value against that generated by raw cotton exports, which could help in bring in much needed foreign exchange.