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New Egyptian govt set to allow cotton imports
Jun '12
The new Government being formed in Egypt under President Mohammed Mursi is set to allow cotton imports.
In October 2011, Egypt had banned cotton imports so that the domestic spinning industry utilizes the local supplies, instead of using imported cotton. Subsequently, however, the Government lifted the ban in March this year, but had not granted any import permits so far.
The new Government is likely to grant cotton import permits to domestic spinners, who are facing a shortage in local supplies.
The US Department of Agriculture’s Cairo bureau expects the cotton imports to surge by 77 percent to 530,000 bales in the 2012-13 marketing year that begins in August.
The imports will help Egypt offset the more than 40 percent decline in cotton production to 430,000 bales, said to be the lowest in about half-a-century.
On the other hand, the demand for cotton from downstream yarn, fabric and garment industries is expected to rise due to a relatively better economic environment, after the end of political turmoil witnessed in Egypt since January 2011.
Egypt’s cotton, especially the Giza 88 variety, which constitutes about 20 percent of total Egyptian cotton production, is much sought after in international markets as it is considered to be producing the best-quality fabric.

Fibre2fashion News Desk - India

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