Egypt's Agriculture Ministry banned all cotton imports in a decision issued Tuesday, as the government moves to protect domestic cotton production. This decision is causing a stir among leading experts in Egypt, who fear that Egypt's own textile industry will suffer.
According to the ministry, the move is to protect and improve marketing for domestic cotton production while protecting the interests of cotton producers, manufacturers and exporters. However, putting a stop to cotton imports, a decision that was put into effect on July 4th, could prove to be catastrophic for the textile industry that is highly dependent on the imported short-staple cotton, a crop that is rarely grown in Egypt.
“It's a disastrous decision that will lead to factories closing down and will negatively affect the textile sector,” Mohamed El Morshedy, chairman of the chamber of textile industries, told Ahram Online .
"We do not produce small- or medium-staple cotton and there are the main raw materials used in manufacturing."
This decision favors the farmers, according to Cairo University agricultural economist, Gamal Siam. He explained that the decision would force traders to buy domestic cotton at a price higher than the international price.
Though Siam sees the ministry's point, he's also wary of the consequences this decision will have on the textile industry.
"The government is enforcing Egyptian cotton on factories. The ideal solution would be for the government to provide subsidies, but unfortunately, the government is against all forms of subsidies. Banning imports all together is a very dangerous move," he told Ahram Online.