Cabinet lifts Decision to halt Cotton Imports

Big 5

The Egyptian government reversed a former decision to halt the import of cotton, the cabinet announced after its weekly meeting on Wednesday.

The cabinet said in a statement that it is allowing “the import of cotton this year”.

On July 7, Egypt’s ministry of agriculture decided to halt the cotton imports “to protect local produce” and “resolve problems related to marketing it.”

At the time, the ministry spokesman told Aswat Masriya that the decision is temporary, but did not say when it will be suspended.

The Egyptian government lifted cotton subsidies completely at the beginning of 2015. The subsidy cost the government $550 million in the last season it was applied.

Cotton cultivation is expected to span 260 thousand acres this year, according to an Agriculture Ministry report issued in March.

Egypt has long been famous for its unique long staple cotton, especially under the British colonial rule.

Total Egyptian cotton exports rose by 94.3 percent year on year, in the period from December 2014 to February 2015, the national statistics agency reported in May.

Source: Aswat Masriya