As The Egyptian Government Failed To Provide Support, Cotton Exports In 2016/17 Decreased By 20% Over The Same Period Last Year.

The latest report of the US agricultural counsellor shows that the Egyptian government can not commit itself to

Sales provide strong support. In 2016/17, Egypt's cotton sowing area decreased by 50% to 750 thousand mu, and cotton production decreased from 86 thousand tons to 34 thousand and 800 tons, the lowest level in history, a decrease of 53% over the same period last year.

According to the report, Egypt's cotton consumption in 2016/17 is 128 thousand tons, and imports are expected to grow 18% to 115 thousand tons, and export volume is expected to decrease to 26 thousand tons, down 20% from the same period last year.

In 1980s, the cotton area in Egypt once reached 7 million 500 thousand mu, which decreased to 6 million mu in 90s, and decreased to 3 million 340 thousand mu in 2000/01, and dropped to 1 million 500 thousand mu in 2015/16.

The main reason for the rapid and continuous decline of cotton planting area is the change of consumer preferences and the new textile technology.

Great changes have taken place.

In recent years, with the obvious changes in consumer preferences, the market for denim, T-Shirts,

The demand for cotton with other medium and short fiber lengths is much greater than that for the use of long staple cotton's high-end clothing and bedding.

In addition, with the continuous improvement of textile technology, manufacturers can more efficiently use medium short fiber length cotton spinning.

Affected by this, global long staple cotton consumption has decreased, accounting for only 2.5% of the total cotton consumption.

The Egyptian government failed to adapt to this change in time.

At present, Egypt's long staple cotton still accounts for 90% of domestic cotton output.

With the drop in demand for long staple cotton and the fall in prices, long staple cotton cultivation is no longer profitable.

To solve this problem, the Egyptian government has introduced policies to provide subsidies to long staple cotton growers.

In the early days of the policy operation, some of the effects were reduced, and the area was reduced. However, in the past few years, the government has reduced subsidies, resulting in cotton farmers unable to sell cotton.

In 2016, the Egyptian government's cotton guidance price was announced too late, and there was no clear government's acquisition of cotton.

Due to the sharp decline in cotton production, Egypt's cotton exports in 2016/17 are expected to decline 20% compared to the same period last year, to 26 thousand tons, accounting for 80% of cotton output.

With the rise of international cotton prices and the devaluation of Egyptian pounds, Egypt's cotton exports will pick up slightly.

At the same time, Egypt's cotton imports are expected to grow by 18%, to 115 thousand tons, to compensate for the shortage of production.