Egyptian govt sets aside EGP 300mn to buy cotton

The government will pay EGP  1,100 ($137) for 100 kg of cotton grown in Upper Egypt, and EGP 1,250 ($156) for 100 kg of long staple cotton grown in the Delta region, the minister said.

This year, cotton was grown on about 250,000 acres and the total produce is expected to be around 200 million kg.

The government is buying cotton from farmers to protect cultivation of the crop. It is also framing strategies to ensure that Egyptian cotton is not mixed with other varieties. Further, the government is also working on a strategy to reduce export of raw cotton and increase its use in spinning mills.

Reversing the earlier decision, in July this year, the government permitted import of cotton into Egypt for a year. This decision saved domestic textile factories from being shut.

The textile industry in Egypt uses much of small and medium staple cotton, which is not produced enough in the country to meet local demand. On the other hand, the demand for Egyptian long staple variety in the international market is also diminishing due to its high price and the increasing use of short and medium variety. (RKS)

Fibre2Fashion News Desk – India