The once-thriving pulses and oil seeds export sector, long a pillar of foreign currency earnings, is facing a critical moment. A sharp decline in export volumes, mounting pressure from regulatory authorities, and a widening disjuncture between domestic and international market signals have thrown the industry into a state of crisis.

A complex tug-of-war between exporters protecting their margins and federal officials desperate to plug a widening hole in the country's external accounts. Federal authorities, alarmed by the sector’s underperformance, have intensified enforcement. The Ministry of Trade & Regional Integration (MTRI), supported by the federal police, has launched a series of inspections of warehouses suspected of stockpiling export-ready commodities, notably Sesame.

According to Abdulhakim Mulu (PhD), a state minister for the Trade Ministry, exporters have been repeatedly warned to stop hoarding and release products stored in warehouses.

“This is hurting the country’s export performance,” Abdulhakim said. “Our competitive advantage is quality. When products are kept in storage for too long, quality deteriorates, and that weakens our position in the international market.”

His Ministry, working with the federal police, has begun inspecting storage facilities suspected of holding large volumes of hoarded products.

With over 90,000tns reportedly sitting in storage, federal trade authorities' reaction has been swift. They have set minimum price floors ranging from 750 to 1,200 Br a tonne, imposed to prod exporters into releasing their stock. These interventions are not happening in a vacuum. The export volume of Sesame has fallen from 359,000tns five years ago to 210,000tns by 2025, a drop exceeding 40pc. The ripple effects are apparent in Ethiopia’s dwindling foreign currency reserves.

According to the State Minister, the authorities are preparing to close warehouses identified as hoarding centres, calling the move "necessary enforcement action to protect export performance."

Leaders of the Ethiopian Pulses & Oil Seeds Exporters Association (EPOSPEA), which represents more than 510 members, circulated a notice on December 26, 2025, following a meeting with officials from the Ministry. The officials pressed market operators to release export-ready products to the international market without delay or face strict administrative measures.

“The Ministry warned us to pass the message that exporters are hoarding products while waiting for better international prices," Edao Abdi, president of the Association, told Fortune. "In the meantime, the country is losing the revenue it should earn from exports. Exporters were informed that the actions could be severe if the practice continues.”

According to Edao, deeper structural issues confront the sector. Many exporters buy commodities from local traders before assessing the conditions in international markets.

“Some exporters buy products before studying and understanding the international market situation," he said. "When that leads to losses, they choose to hold the products and wait for better prices. But this approach is not advisable.”

A recent survey by the Association commissioned placed Sesame as the country’s top oilseed, covering more than one million hectares of farmland. Soybean, at 690,000hcts, follows, with green mung bean, red kidney bean, and white pea bean accounting for the remaining major pulse crops. The total production area for oilseeds and pulses inched up to 2.75 million hectares. Sesame’s cultivated land expanded by over 88,000hcts in the latest season, an expansion of 8.5pc, while the overall area for other crops also increased by 7.8pc.

Despite the sector’s broad footprint, exporters acknowledge that hoarding is a recurring issue.

Ephrem Demissie, a seasoned operator in the import-export business for more than a decade, planned to export up to 200 containers of Sesame this year, along with white pea beans, red kidney beans, and soybeans.