A sweeping regulatory directive has rattled the multi-billion Birr oilseed and pulse export sector, with the government mandating that all payments between exporters and suppliers be channelled exclusively through the Ethiopian Commodity Exchange (ECX).

The shift replaces decades of informal and trust-based transactions with a centralised, bureaucratically supervised payment system, prompting a mixture of guarded approval and pointed criticism from industry players.

The directive, issued by the Ministry of Trade & Regional Integration (MTRI), compels exporters to process all payments for pulses and oilseeds through ECX-monitored bank accounts. Gone are the days of direct bank transfers. ECX now acts as the sole intermediary, transferring payments to suppliers only after both parties file written confirmation of the transaction. A nominal 0.02pc transaction fee is levied for this service.

Federal officials tout the policy as a vital reform to combat payment delays, tax evasion, and market manipulation. Bekele Ketema, an international markets officer at the Ministry, argued that the change will bring much-needed transparency, traceability, and enforceability to a sector plagued by informal practices. According to him, the new process ensures all transactions are digitally recorded, tax-compliant, and contractually enforceable, aligning the domestic commodity trade with global standards.

"The government is seeking to build a more reliable and transparent relationship between the two parties, ensuring that every transaction is formally documented and processed through ECX,” he said.

Bekele argued that the system should increase tax accuracy, as every transaction will be officially recorded through ECX’s 26 bank accounts across the country.

“To ship their product, exporters have to bring confirmation from ECX proving that they used the direct market procedure, and the entire payment system goes through ECX,” he said. “This allows us to build long-term trust and ensure reliable taxation. A traceable and transparent system is essential to fair trade and future growth."

ECX currently serves around 1,300 non-member suppliers and exporters using the direct market, with participation requiring only a tax identification number. An additional 500 members use the Exchange’s spot market system.

Exporters have to secure a net obligation report from ECX, which documents the full details of the traded goods, and submit it to the Ministry of Trade as a prerequisite for contract registration and export licensing.

Leaders within the industry have signalled broad, if cautious, support.

Edao Abdi, president of the Ethiopian Pulses, Oilseeds, & Spices Processors Exporters Association, which represents over 510 members, called the new approach a significant step, set to be applied to this year’s harvest. According to Edao, who is also a major shareholder in Edao International Trading Plc, the system will benefit both sides of the market by regulating payment and preventing the sort of product hoarding previously used to manipulate local prices.

"The relationship between exporters and providers had suffered from weak reliability, delayed payments, and informal, often disputatious, arrangements," he told Fortune. "With the new directive, the entire process becomes legal, documented, and monitored. This will help build strong and reliable relationships between exporters and providers.”

A recent survey by the Association pressed for the oilseed and pulse sector’s central role in the economy. Sesame, which covers over one million hectares, remains the leading oilseed crop, with soybeans following at 690,000hct. Green mung beans, red kidney beans, and white pea beans are the most widely cultivated pulses. Production for oilseeds and pulses now spans nearly 2.75 million hectares, with sesame farmland alone rising by over 88,000hct this year, an increase of 8.5pc, while other major crops expanded by an average of 7.8pc.

Ethiopia exports oilseeds and pulses mainly to UAE, Turkey, China and Israel. Generating over 500 million dollars annually, making it the second largest export item next to coffee. On the ground in the main supply regions, some producers see the new rules as a potential solution to longstanding conflicts. Leaders of the Metema Sesame & Oilseed Providers Union, comprising 45 members, noted that the changes could help address disputes.

“The new rules will make trade easy and safe by ensuring ECX manages payments in a transparent manner,” Habte Zewdu, executive of the Union, told Fortune.

In the past, frequent disagreements had often led to legal action between exporters and suppliers, but Habte now sees hope that “this system can stop all of that."

"The direct market process can finally become reliable,” he said.

Not everyone, however, is convinced. Many exporters argue that the new system imposes a fresh set of burdens that could disrupt established business networks and trust.

“Now we've to open new accounts under ECX to pay for products,” said Ephrem Demissie, an experienced importer-exporter with more than a decade in the business.

According to Ephrem, the industry used to rely on contract farming, the ECX commodity exchange, and vertical integration. In the latter, exporters bought goods directly from suppliers, often leveraging relationships established over the years. Payments were sent directly to the suppliers' accounts. With the new directive, this transaction model has been scrapped.

“This is another headache, another pressure added on exporters,” he said, pointing to the need to hire extra staff to manage the new bureaucracy and processes. “The global market and competition are already big pressures on us.”

Despite his concerns, Ephrem plans to export more than 100 containers of oilseed products this season.

Other exporters, such as Sintayehu Kasahun, manager at Assefa Yesuf Export Plc for seven years, voice similar frustrations. His firm, which has been active in exports for more than 15 years, had always relied on advance payments to secure timely deliveries.

“We used to pay in advance so we could secure the required volume of product in time,” Sintayehu told Fortune.