CAIRO: Importing cotton into Egypt has been allowed for a year, according to a Wednesday decision by Prime Minister Ibrahim Mahlab following a meeting with ministers of Trade, planning and investment.
The Federation of Egyptian Chambers of Commerce (FEDCOC) praised the Cabinet’s decision to cancel Minister of Agriculture Salah Helal’s decision to ban importing cotton and requesting an integrated study preserve the farmer and producers’ interests.
FEDCOC Secretary-General Alaa Ezz Amin said the past decision “did not consider” the textile industry, which represents 14.5 percent from total imports and employs more than 400,000 workers.
The Cabinet’s decision “saved the textile factories from collapsing,” head of the Federation of Egyptian Industries Mohamed el-Sewidy told Youm7.
“The decision reflects that the Cabinet is keen on saving national industries and on solving the obstacles that face these industries,” he added.
Sewidy noted that the textile industry depends on the small and medium staple cotton, which Egypt does not produce.
On July 7, the Ministry of Agriculture halted all cotton imports in a bid to assist the production and marketing of the local crop, signaling a change of course just six months after announcing an end to subsidization for its farmers.
“The decision aims to protect local production of cotton and resolve its marketing problems,” the ministry said in a statement, adding that the ministry “is keen on Egyptian cotton regaining its glory on all levels.”
The market for Egypt’s high-quality, extra-long staple cotton, once dubbed the country’s “white gold”, has been in decline for years.
Egypt liberalized its cotton sector in 1994, exposing farmers to volatile global prices and rising fertilizer costs.
Cotton acreage has fallen dramatically since the heyday of the 1960s, when Egypt produced cotton from up to 2.2 million feddans (924,000 hectares) helped by fixed state prices.
Current production is around 350,000 feddans, according to cotton traders.