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FINANCIAL NEWS
Egypt enforces temporary ban on raw cotton imports
30 Oct 2011
(MENAFN) Egypt’s trade minister, Mahmoud Eisa, said that due to a drop in prices of cotton produced in the country, Egypt enforced a momentary ban on raw cotton imports until the local crop would be sold, reported Arab News.
Eisa added that cotton farmers in the country cultivated more cotton this year than in 2010; however, traders offered low prices which made it difficult for farmers to transfer stocks.
On the other hand, the Agriculture Minisitry said that the Principal Bank for Development and Agricultural Credit allocated around USD8.4 million in order to purchase cotton from local cooperatives.
It is worth noting that Egypt’s local cotton output is estimated at 3.7 million qintars, a measurement equivalent to 160 kg of cotton and 50 kg of cotton lint, of which 2 million qintars will be exported, whereas the remaining 1.7 million qintars will not be enough to fulfill the needs of domestic market.
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