Cotton imports 2007-08 forecast to rise slightly

08 May '07

3 min read

The Ministry of Agriculture continues to be the sole distributor of cottonseed. In order to encourage early cultivation to conserve water, the Egyptian government continues to provide some assistance to cotton farmers who cultivate cotton before March 31 (not many farmers cultivate cotton before March 31) to help with the cost of production such as land preparation, pesticide and planting seeds.

Consumption and Utilization:
For 2007/2008, total use is projected at 970,000 bales, reversing a downward trend of previous years. Until a few years ago, the textile industry's annual requirement of raw cotton averaged between 1.2 and 1.4 million bales. The loss of competitiveness and financial difficulties of local textile companies, plus the relatively high prices of local cotton, caused the downward trend.

Approximately 60 percent of total cotton consumption is imported cotton, mainly from Greece and Sudan. Imported cotton is used in the production of coarse count fabrics (Ne 20/1 to Ne 30/1), which are used for shirts, knitwear and toweling.

Textile and garment exporters also import fabric from cheaper sources such as Syria, Pakistan and India. This is done under the temporary admission system of imports, which allows manufacturers to import their inputs duty free provided that the end products are exported.

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United States Department of Agriculture Foreign Agricultural Service

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