Egypt looking to restore cotton industry to top global markets: minister
Egypt is adopting a new strategy to restore its cotton industry to its place at the top of the global cotton market, Public Business Sector Minister Hisham Tawfik said on Tuesday.
In a meeting with the heads of public and private cotton companies, Tawfik said the new strategy involves implementing a new system for cotton trading which will be put in place on a trial basis in Fayoum and Beni Sweif governorates during the harvest season of 2019.
“The new system, which costs 8 million pounds, has determined that 17 centres are to receive cotton crops directly from farmers with no intermediaries. Nine (of the centres) will be in Fayoum and the other eight in Beni Sweif. These centres will also provide farmers with special cotton packs as of 17 August to protect the crops from contamination,” Tawfik clarified.
Tawfik also said that sales will be through public auction and in accordance with the American long-staple and short-staple cotton prices, where farmers earn the highest revenue in line with international prices.
Tawfik added that that system gives farmers the right to be paid 70 percent of the sales price in cash, and that the remaining 30 percent are to be paid within one week of the public auction.