A national plan is required to maintain the existence of Egypt cotton..SavingA StrategicCrop
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A national plan is required to maintain the existence of Egypt cotton..
Saving
A Strategic
Crop
By: Eng. TharwatElMiniawy
Recently, Egyptian cotton has faced many problems and challenges that have had a significant and direct effect on its status in the international market. These challenges are a consequence of some internal and external factors the most important of which are the world financial crisis and the recent economic recession along with the increase in prices for fertilizers, seeds, pesticides and a general rise in production costs.
The decrease in global demand for extra long staple ELS cotton, the effect of cotton subsidy programs in some producing countries, the decrease of international prices for competitive varieties such as U.S. Pima cotton, and the sharp decrease of Upland prices have all contributed to local Egyptian spinning mills buying these cottons in quantities exceeding 2 million kantars. In turn, these factors resulted in a significant decrease in domestic cotton planting area, marketing, trading and manufacturing, as well as a decrease in production and export commitments. These are the challenges that Egyptian cotton faces.
Today, there is a need for a national plan to strengthen this strategic crop by studying the international market outlook concerning the demand for LS and ELS cotton. The involvement of all cotton sectors and the Egyptian government ministries (Ministry of Agriculture and Ministry of Trade and Industry) is needed. The involvement of the Cotton Research Institute is also critical. The Institute is being called on to improve cotton breeding programs, maintain superior strains and develop new Egyptian varieties that meet the requirements of the local and international market. These varieties would be characterized as high yielding, high quality, suitable for machine picking, resistant to pests, and suitable for producing high-quality yarn. There is also a need to increase the number of commercial varieties available to increase the choices for local spinning mills and importers.
Specifics of the Plan
The national plan would regulate a new marketing system that announces guide prices before planting. Guide prices would be set according to scientific studies on international cotton prices and would take into account the costs needed to achieve profitable returns for producers.
The plan would include governmental support for the cotton crop in the form of direct and indirect subsidies. Subsidies would be paid for research into all aspects of the cotton business, from production to marketing to the study of different markets. Support for input prices would be provided as well.
In addition, the plan would establish a cotton price stabilizing fund with the primary goal of protecting cotton from the risks that results from extreme price fluctuations. This would protect cotton dealers and producers, traders, manufactures and exporters.
Applying an overall plan that involves all cotton handling parties from picking to exporting is imperative. The Up-country Committee for Organizing Cotton Trade, the Alexandria Cotton Exporter’s Association ALCOTEXA and the Cotton Arbitration and Testing General Organization GATGO can provide leadership in this process.
In its technical and supervisory role, CATGO performs cotton moisture regain testing using the most updated ovens, issuing certificates that are fully computerized as well as arbitration certificates that include cotton variety and grade. CATGO’s achievements in preserving Egyptian cotton from contamination and shrinkage have been confirmed by International Textile Manufacturers Federation ITMF reports. In addition, CATGO is known for its effective role in measuring and testing lint cotton quality and the continuous improving and upgrading of its labs by introducing the new generations of HV1 (HV1 1000), micro=mat and other equipment.
Establishing a national plan with strong leadership will allow Egypt to retain its superiority among cotton growers in all local and international markets.