A History of the Ethiopian Governments’ Interventions in Marketing and Pricing of Food Grains, with Special Focus on the Agricultural Marketing Corporation (AMC), 1950s–1991

Abstract:

This article looks into the different marketing and pricing strategies by successive Ethiopian governments to intervene in the food grain industry, with more particular focus on the Agricultural Marketing Corporation (AMC). It explores the interventions made during the imperial regime from the 1950s to 1974, as well as the distinct approaches taken during the Derg period from 1974 to 1991. Through a close examination of various Ethiopian archival collections, this study reveals that the two governments, especially the Derg regime, had highly intervened in the purchase, collection, and distribution of food grains through parastatal organizations. Therefore, fixed pricing regulations by the Derg were practiced both for producers and consumers in line with a systematic approach to the control of the market. The study concludes that government interventions, aimed at improving grain quality and stabilizing the market through price controls since the mid-twentieth century, failed to achieve their goals and excessively burdened farmers and the agricultural sector. In addition to providing insight into past practices, this research poses significant queries on the ongoing ramifications for the nation’s current agricultural policy.