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US Agriculture Department Predicts 17% Plunge in Egypt's Cotton Production
May 08, 2009
The Foreign Agricultural Service of the U.S. Department of Agriculture has published its report on cotton production in Egypt. Total Cotton area and production in 2009-10 is forecast to decline by 17% to 110,000 Hectares, due mainly to the declining profit margins for cotton. Exports are expected to decrease significantly to 100,000 bales due to the world financial crisis coupled with competition from subsidized cotton producing countries. Imports are expected to increase to 420,000 bales. The increased costs of cotton production has led farmers to replace some cotton areas with other more lucrative crops like corn and rice.
In an attempt to promote the usage of Egyptian cotton, the government allocated LE 325 million ($ 58 million) for the textile sector. The government declared that it would pay LE 2.72 ($0.50) per kg of yarn produced from Egyptian cotton in order to make it more competitive with imported yarn. However, the impact of this announcement is not expected to affect farmerís decision to plant less cotton. In 2009-10, about 20% of the total cotton crop is expected to be extra long staple (ELS) varieties, about 2% less than the previous season.

 
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History of Textile Industry- A Reference
Textile industry has come a long way to be an organized industry from being a mere domestic industry. Starting with the Industrial Revolution, it has gained a state of supremacy with time. High production of wool, cotton and silk all over the world has given a boost to the textile industry in past years.