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Egyptian textile industry faces rough weather
Jan '12
The entire Egyptian textile industry is at risk and around 900 manufacturing units are facing a shutdown, according to experts.

In recent times, Egyptian textile industry has been affected by two significant policy changes – the liberalization of cotton trade and the privatization of the state-owned companies.

Currently, Egypt's textile industry consists of three sub-sectors. The state-owned sector has 32 ginning, spinning and weaving industries. The investment sector mainly comprises of firms owned by overseas investors. The private sector consists of firms owned by Egyptian entrepreneurs and investors. The last two sectors together have more than 4,100 companies, mainly engaged in the production of home textiles and garments.

Last year, a list of 20 decrees was issued by Minister of Trade and Industry Mahmoud Eissa to save the country's textile industry. The new orders included levying if duty on imports of yarn, carpets, textiles and garments.

The Government has also put into effect an order banning the purchase of imported items that have a local equivalent. It stresses on monitoring of industrial and commercial imports, and reducing the period of temporary permits from two to one year.

In addition, stringent control measures were also announced, including surprise inventory checks, and ensuring that temporary permits are not misused for other purposes and allowing release of goods imported on temporary permits at a cap of 150 percent of the production capacity of the manufacturer.

In 2010, Egypt exported overall textile goods worth EG£ 14.5 billion (US$ 2.4 billion), which included EG£ 4.8 billion (US$ 800 million) in exports of home textiles and EG£ 9.03 billion (US$ 1.5 billion) in garment exports.

Fibre2fashion News Desk - India

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