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Low cotton supply causes textile firms to cease operations
31
Dec '10
Cotton produced in Egypt is not adequate to fulfill the requirements of its companies, particularly because the domestic cotton production has almost dwindled.

According to some experts, the crisis in the supply of cotton is a worldwide crisis caused by the cotton exporting nations which had raised the cotton prices. Egypt is trying to convince a number of cotton exporting countries so that they can export their cotton to it before the month of April, when majority of the cotton exporting nations have decided to put an end on the ban on cotton exports.

Most of the Egyptian spinning as well as weaving firms might be forced to cease their operations for three weeks owing to the low cotton supply. The country has also decided to cease its cotton exports which is entirely a political decision taken by the government keeping the country's interest in mind.

So far, the Egyptian government has been successful in persuading US to export its cotton to Egypt and the US cotton is likely to arrive in the country within a short period of time. Negotiations are also being carried out with Benin and Burkina Faso so that Egypt can import cotton from these countries.

If the spinning and weaving companies are compelled to halt their operations, this will only be for a small period and should not have any serious impact on the proficiency as well as competence of the machines and equipments.

Fibre2fashion News Desk - India


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