Egypt wants to corner a larger global share for cotton amid competition from lower-quality cotton producers. A decision to set a guaranteed price for buying cotton from farmers has led to a significant increase in cultivated areas. These are the prices the government will pay to farmers in case they cannot sell their crops.

Difficulties in obtaining foreign currency make textile factories buy more Egyptian cotton for their production. There has been a tightening of controls over farms that cultivate lower-quality cotton. Inspections were tightened last season, resulting in higher production of good quality long staple cotton for which Egypt is best known. Egypt hopes for higher exports as a result of more areas being cultivated by cotton. It is also looking to more raw cotton going textile factories before being exported to gain from added value.

Raw Egyptian cotton is exported to countries like Pakistan which mix it with lower quality material and sell it as Egyptian cotton. This has harmed the reputation of Egyptian cotton in the global market. So the country will export thread and fabric rather than raw cotton.

Textile factories in Egypt currently import cotton because it is cheaper. Egypt may increase import duties on cotton to support locally produced crops.