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Egypt's cotton output likely to decline in 2012-13
Jul '12
The production of cotton in Egypt is likely to witness a decline in 2012-13, along with the expected fall in global cotton output.
According to the Egypt-based Cotton Exporters’ Association, global cotton output is likely to fall to 24.9 million tons during 2012-13.
Ahmed Moustafa, Head of the Cotton Affairs Committee of the Cotton and Textile Industries Holding Company (CTIHC), said that alongside a fall in global cotton production, the domestic production in Egypt would also take a dip and fall from last year’s 3.6 million tons to 2.4 million tons.
However, he noted that with last year’s cotton surplus of 1.2 million tons, the commodity’s prices would not change considerably during the current year.
Sharing similar views, Cotton Exporters’ Association member, Ahmed El-Basaaty, said that as poor sales during last season have resulted in a surplus of unsold stock, there are few chances of any major price hikes in coming season. This may lead to a 30 percent decline in cotton farming during the next season, he mentioned.
As per the Cotton Exporters’ Association study, during 2011-12 season, global cotton consumption of textile mills decreased by seven percent to 22.7 million tons, the lowest in the past eight years.
Farmers’ Union Sales Manager, Reda El-Gharabawy, recommended enhancing Egypt’s domestic cotton ginning capacity, so as to avoid a situation where the country needs to export raw long-fibre cotton for processing abroad. Presently, Egypt imports processed long-fibre cotton by paying higher prices, he added.
Egypt exported 1,309 tons of cotton during the 36th week of the current season, taking its overall cotton export volume for 2011-12 season to 79,600 tons.

Fibre2fashion News Desk - India

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