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Distributors and retailers who were distorting the cement trade were out of business.
Distributors and retailers who are disrupting the cement trade have been shut down, according to the Ministry of Trade and Regional Cooperation.
Minister of Trade and Regional Co-operation, Gebre Meskel Chala, said in a statement that cement, the main input in the construction sector, is being distorted by non-economic factors and the price is increasing day by day.
According to the Minister, the mismatch between supply and demand is one of the main reasons for the crisis.
With the exception of one of the 13 cement factories in the country, they are producing less than 50 percent of their production capacity, he said.
He also said that the low production capacity of factories, lack of spare parts and lack of trained manpower are the reasons for the low productivity of factories.
According to the Minister, the increasing demand for cement in various construction projects in the country has widened the gap between supply and demand.
According to Gebre Meskel, the government has decided to shut down cement distributors and retailers in order to solve the problem and deliver cement products to consumers at affordable prices.
Federal and regional projects can be purchased directly from factories and used.
He said any consumer and projects can be purchased at the factory at a nearby factory.
According to information received from the Ministry, the distributor does not allow a distributor in accordance with our country’s trade law.
He also said that the productivity of factories will be improved and another solution will be found for the transaction when the supply and demand are balanced.