Home / Knowledge / News / Textiles / Egypt textile sector needs subsides to face competition

Egypt textile sector needs subsides to face competition

31
Dec '11
Egyptian textile industry continues to suffer as domestic products fail to compete with low-priced imports of textile and readymade garments from other countries, according to a report.

In recent times, some large textile units have shut down as production costs and salaries of workers continue to mount, according to the report presented by Mohsen el-Gilani, Head of the Holding Company for Spinning.

In his report to Prime Minister Kamal el-Ganzouri, Mr. Mohsen said the textile sector employs over 30 percent of the Egyptian workforce and hence closure of textile industries in the country would lead to social disaster.

He has recommended the Government to act swiftly to protect the country's domestic textile industry, which is suffering from unfair competition.

The report says in countries like India, Pakistan and Uzbekistan, the Government subsidizes cotton and yarn and also provides support for their exports. The Egyptian Government needs to give a similar subsidy to textile manufacturers in the country to enable them to withstand the fierce competition from imported goods.

At present, import of yarn into Egypt attracts a custom duty of only 5 percent and a 10 percent duty is levied on imports of fabrics.

The report states that part of the problem can be addressed by halting or rationalizing the export of cotton to meet the needs of domestic textile producers.

Last year, an agreement was reached between the Federation of Cotton Exporters (FCE) and Egypt's spinning and weaving mills to halt signing export contracts until early June. The deal permitted domestic companies to procure cotton at the export price.

However, the report said such measures are not enough to revive Egypt's giant textile industry that once accounted for nearly 25 percent of the country's exports.

Fibre2fashion News Desk - India


Must ReadView All

Pic: Ritu Manoj Jethani / Shutterstock.com

Apparel/Garments | On 31st Jul 2021

US firm Steve Madden moves production to Mexico & Brazil from China

As supply chain disruption remains a significant challenge, American...

Pic: GBG USA

Apparel/Garments | On 31st Jul 2021

Apparel & footwear firm GBG USA files for bankruptcy protection

GBG USA, an indirect wholly owned subsidiary of Global Brands Group...

Pic: Shutterstock

Apparel/Garments | On 31st Jul 2021

Asian garment industry market concentration, consolidation rise: ILO

Although Asia's garment market rose in size in value terms before the ...

Interviews View All

Vandana Narang, National Institute of Fashion Technology

Vandana Narang
National Institute of Fashion Technology

Campus placements are low due to lockdowns

Textile Industry, Head honchos

Textile Industry
Head honchos

Next level is to inject new features:

Textile Industry, Head honchos

Textile Industry
Head honchos

There was a certain switch, but it was not 100% pandemic related

Chendhuran Sundar,

Chendhuran Sundar

Headquartered at Singapore, Crocodile is a global fashion and lifestyle...

Erwin Devloo,

Erwin Devloo

The Picanol Group is a diversified industrial group active worldwide in...

Kishina Daruka and Mishika Daruka,

Kishina Daruka and Mishika Daruka

Headquartered in Kolkata, India, sustainable clothing brand Ora was...

Seth Casden, Hologenix

Seth Casden
Hologenix

Hologenix is a material sciences company dedicated to developing products...

Silverio Baranzano, Fitesa

Silverio Baranzano
Fitesa

Fitesa is a leader in the nonwoven fabrics industry, specialising in...

Dave Rousse, INDA

Dave Rousse
INDA

INDA, the Association of the Nonwoven Fabrics Industry, serves hundreds of ...

Vidur Adlakha & Riccardo Bennidini, La Fuori

Vidur Adlakha & Riccardo Bennidini
La Fuori

With an active presence in US, Italy and India, clothing brand La Fuori...

Aprajita Toor, Aprajita Toor

Aprajita Toor
Aprajita Toor

The creations by Aprajita Toor were born out of a deep desire to create...

Niti Singhal, Twee In One

Niti Singhal
Twee In One

Best known for convertible clothing, Indian brand Twee In One by designer...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


July 2021

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search