Egyptian Banks Procure 34 Million USD to Import at least 19,500 Tons of Cotton to save the local spinning industry from collapsing

It is obvious from the above table that shortage of delivered cotton to the Egyptian mills. Thus, the Egyptian government deceided to take immediate actions to import cotton to fill in the gap. The first batch of imported cottons will be received during the forthcoming days as the public sector banks had discharged documentary import credit for 19,500 Tons costs 34 million USD in Greece. The average consumption of Egyptian spinning mills last year was 190,000 Tons while the deliveries of Egyptian cotton is only 70,000 Tons until 18th of January and only 54,000 Tons are available from the Long staple Egyptian cotton (including Giza 86) for local spinners and exports.

The accredit decision come as a result of fruitful efforts and negotiations held between Minister of Public Enterprise, and heads of banks. Moreover, It is a step towards enhancing the companies situation on the light of the current season crop which is much less than that of the last year and consequently this might brought to a significant crises.

It was pointed out that importing foreign cotton has become a determinism as the Egyptian cotton crop covers the domestic needs until March only. Therefore, the absence of cottons required leads to spindles closure and deterioration of industry and national capabilities due to exports of Egyptian cotton last year carry-overs. It was also mentioned that our industrial needs of cotton requires importing 12,500 Tons per month with total imports 125,000 Tons until the beginning of the new season in September, in addition to, importing 25,000 tons of polyester monthly as to reach 275,000 Tons as whole .The total amounts needed to import cotton is 300 million USD(40 million USD/month), taking into consideration that yarn production of 2002/2003 reached 185,000 ton. While, the exports value of Egyptian cotton fibre so far has reached only 185 Million USD until 18th of January.

We have received several comments in reply to Egytex.com newsletter 11th edition question, and it involved great concern from importers of Egyptian cotton yarn, fabrics and home textile products made from Egyptian cotton fibre in Europe and the US on the effect of the current crisis on the stability of sourcing Egyptian cotton textiles and apparel from Egypt, which will be published in details in our next issues.