Egypt’s cotton exports fell 38.6 per cent from September to November 2019 compared to the same period last year. Reason: decreased cotton production. The total amount of cotton locally consumed increased 14.1 per cent over the same period. The quantity of ginned cotton decreased 32.3 per cent.

Egypt is planning to develop the cotton industry, diversify its uses in the industry and thus improve the quality of products manufactured by Egyptian cotton, making them more appealing to global markets. Egyptian cotton production is on course to rebound with help from a devalued currency and a bigger cultivation area, recovering from a slide in exports of the world-famous crop since 2011 that was caused by a drop in quality. Output fell drastically in 2011, when political upheaval meant regulations to maintain quality were not enforced.

Egypt has regulated cotton trading. The decree limits cotton trading to specified collection points. Farmers are allowed to get the highest possible price through auctions, and prices will be set according to international cotton prices and the comparative advantage of Egyptian cotton. The decree also links all collection points electronically to ensure transparency, with a consideration for applying the new system through new collection points in some governorates as a pilot version to avoid any problems in the future.