MUMBAI (Commoditiescontrol) - The USDA in its Global Agriculture Information Network (GAIN) report, projected Egypt’s 2015-16 cotton production at 315,000 bales, a drop of 40 per cent from 525,000 bales in the current season.
The agriculture department has lowered its forecast in the wake of Egyptian government’s decision to stop cash subsidies to farmers and spinners for Marketing Year (MY) 2015-16. Resulting farmers to sign contracts with third parties, urging spinning and weaving companies to sign the contracts with farmers based on their needs at government fixed prices announced in early February. The Ministry of Agriculture and Land Reclamation (MALR) started offering such subsidies to farmers for the first time in MY2014-15.
USDA sees total cotton area in the country at 93,000 hectares (ha) compared to 155,000 ha in the current season. The government of Egypt is expecting cotton area planted to drop in the coming 3-4 years; consequently, MALR announced that the targeted area for cotton in 2015-2016 is 105,000 ha.
Due to deteriorating seed quality, the government will be the only producer and supplier of cottonseed, in an effort to improve cotton quality.
Consumption in the upcoming MY is estimated to remain stable at 650,000 bales, prompting an increase in imports by 30 per cent to a record 450,000 bales, while exports are expected to drop by 13 percent to a record low of 130,000 bales. Local spinners will absorb about 70 per cent of their cotton needs from imports and the remaining 30 per cent from local cotton production.
Cotton exports in the course of the current MY2014-15 year are expected to reach 150,000 bales. India, China, Italy, Turkey, Bangladesh and Pakistan were Egypt’s top export destinations in MY2014-15 and are expected to remain so in MY2015-16.
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(By Commoditiescontrol Bureau; +91-22-61391533)
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