Officials at the Ministry of Agriculture move to set a minimum price threshold for horticulture exports, at the backdrop of a study that hopes to regulate international trade. The decision came after observing that export earnings constituted less than 0.3pc of the total, which accounted for 11 million dollars last year.

Over 14 high-valued commodities, including avocado and strawberry from fruits, green beans and sugar snaps from vegetables, and 12 types of herbs making their way to the  Middle East, Europe, and the US are included in the study.

Export performance was low despite blooming prospects for the sub-sector development. Officials believe the study will help them control foreign currency flow in a market currently plagued with under-invoicing, subjected to lower earnings.

According to Dereje Abebe, director of horticulture investment at the Ministry, the mismatch between export volume and revenues was the primary reason for conducting the study to set the minimum price threshold.

"The earnings didn't represent the volume," he said.

Experts drawn from the central bank, Customs Commission and Ministry of Revenues are part of the study, examining the previous export trends and production costs. Basing their study on previous experiences of Djibouti dealings, they plan to consult buyers and exporters, in line with international trade policy.

The trade policy reversal came after the authorities at Djibouti raised complaints. Djibouti is a major export destination for Ethiopia’s fruits and vegetables, accounting for over 75pc of the shipments from 15 vegetables and 16 fruits.

Two years ago, authorities at the Ministry of Agriculture were forced to backpedal on their decision to raise the highest price of horticulture products nearly five-fold from 0.22 dollars. The prices saw up to 40pc increase last year, following a prolonged discussion with the Djibouti government for months.

There are over 45 registered exporters of fruits and vegetables. A quarter are slated for the international markets while diversification is considered an urgent issue along with vulnerability to external shocks.

Regulators believe the thresholds are important to govern trade and the foreign exchange market.

Mehari Mengstu, head of foreign currency supervision at the National Bank of Ethiopia, stated the different prices paved the way for under-invoicing, making it challenging for regulation.

The recent decision is a broader plan to diversify the exports from the regional states to the international markets and amplify foreign currency earnings.