Tiret Concludes Cotton Supply Deal with Ethiopian Industrial Input Supply Enterprise
Tiret, an endowment fund of the Amhara National Democratic Movement, secured a major deal with the Ethiopian Industrial Input Supply Enterprise to supply one thousand tons of denim cotton, according to The Reporter.
The enterprise is procuring the cotton for distribution to textile factories. Abay Kebede, Deputy Director of the Enterprise said, the deal is part of the implementation of the enterprise’s new mandate aimed at assisting farmers by facilitating market access. He underlined that the enterprise will undertake the transaction without a profit motive. “Our major aim is to curb the challenges in the value chain” Abay said.
Tadele Mengiste, General Manager of Tiret Loyal Cotton Production, said his company will supply the cotton from its farm located in Metema, Amhara Regional State.
Ethiopia produces 45,000 tons of cotton annually and the demand has reached 75,000 tons, according to a recent study conducted by the Ethiopian Textile Industry Development Institute.
In addition to the shortage of raw materials, the quality and tariff of cotton has been a source of bickering between the government, suppliers and manufacturers.
"Cotton pricing is still a major challenge and we will still fight until we have th right price. However, we have signed this new agreement despite all the challenges and we believe that things would change through time". Tadele said.