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Egypt’s cotton cultivation policy undergoing changes

The cotton cultivation policy seems to be undergoing a significant change in Egypt. It is now trying to restrict the number of varieties to be cultivated in the country. Previously, seven varieties of extra-long cotton were being produced in the country. Their number is now being brought down to just two, viz Giza 70 and Giza 88. Production of Giza 87, Giza 77 and Giza 84 has been discontinued and that of the once popular Giza 45 has come down to a trickle.

Likewise, in the case of long staple varieties, Egypt wants to concentrate on five varieties, viz, Giza 86, Giza 89, Giza 85, Giza 80 and Giza 83. Three other varieties have already gone out of production. They are Giza 75 and Giza 81 and Dendra. Giza 90 is also expected to disappear in due course of time.

In sum, Egypt, will be concentrating on the cultivation of just two varieties of extra long and five varieties of long staple cotton. Thus avoiding the multiplicity of varieties, which lead to problems of inter mixing.

Egypt continues to follow the policy of freedom both in regard to cultivation and trading in cotton. However, there are few conditions that required to be observed.

Those who want to buy cotton from producers will, however, have to pay some minimum price so as to assure a good marginal profit to the cultivator.

Egypt continues to follow the practice of declaring export prices keeping in view the market mechanism, comparative international prices and quality differentials.

Special attention is being paid to improve spinning utility of cotton produced in the country. The handling of cotton from the stage of picking to exports, is being strictly controlled to avoid contamination. Efforts are also being made to promote production of environmental-friendly organic cotton for which there is demand in certain countries. Experiments are also being carried out to extend cotton cultivation to new areas.

Trading in internal and external markets for cotton has been considerably relaxed of late. There are as many as 140 dealers trading in the internal market. Among them, 30 are in the public sector, while the remaining 110 include individuals private firms, companies and cooperatives.

More than two dozen firms have been registered in Alexandria as cotton exporters. Of them, nine are in the public sector and the remaining are in the private sector. The public and private sectors divide the available quantity for exports, in the ratio of 40:60, indicating a trend towards liberalisation. The area under cotton cultivation in Egypt has undergone many fluctuations in recent years. The area was as high as 921,000 feddans (one feddan is equal to 1.03805 acres) in 1996-97. This went down gradually to 518,000 feddans in 2000-01, but again increased to 752,000 feddans in 2001-02 and 766,000 feddans (estimated) in 2002-03.

In view of the increase in area and improvement in productivity, cotton production in Egypt went up to 313,000 tonnes in 2001-02 from the recent low of 208,000 tonnes in 2000-01. It might be interesting to note that Egypt produced as much as 411,000 tonnes of cotton way back in 1993-94. However, it could not maintain that level in the subsequent years. In fact, there was drop in the crop in the next two years after reaching the peak. The production fell as low low as 238,000 tonnes in 1995-96, but revived in the subsequent two years when it reached the levels of 341,000 tonnes and 338,000 tonnes. The subsequent three years were of declining production with the crop size touching the recent low of just 208,000 tonnes in 2000-01. Production has improved again thereafter.

Though Egypt is known for some of its excellent varieties of cotton, its textile industry has been unable to take adequate advantage of that situation. In fact, the textile activity in Egypt seems to be going down as is evident from the fact that the domestic cotton consumption in Egypt has been sliding.

Its textile industry consumed as much as 271,000 tonnes of cotton in 1993-94. This continued to fall in each of the subsequent seven years, reaching the low of just 135,000 tonnes in 2000-01. This indicates a fall of nearly 50 per cent from the earlier peak level. However, internal consumption of cotton in Egypt revived to 150,000 tonnes in 2001-02. This level is believed to have been maintained in 2002-03 as well.

Egypt is a major exporter of high quality cotton to various countries in the world. Though its present production level is much lower than the peak achieved in 1993-94, it is able to export a substantial quantity of this fibre to other countries, since its own domestic consumption has come down, enabling it to spare a substantial quantity for exports.

As in the case of production, there have been wide variations in its export of cotton as well. Egypt exported about 118,000 tonnes of cotton in 1993-94, when it harvested a bumper crop. With the decline in production in the subsequent two years, exports also dropped and came down to a trickle of just 19,000 tonnes in 1995-96. The situation has, however, improved since then. Exports of cotton from Egypt were of the order of 108,000 tonnes in 2001-02. Egypt has a commitment to import small quantities of cotton from Sudan and Greece.

M D Dewani