The latest figures released by the USDA, the US Department of Agriculture, are encouraging for Egyptian cotton. Although it is recognized for its very high quality. Exports grew by almost 20 TP2T during the 2016-2017 campaign, which ended on July 31. While acreage increased – 220,000 acres (89,000 hectares) under cultivation, nearly double the previous year.
The devaluation of the Egyptian pound has made this high-end fiber more competitive
The relaunch of this niche cotton, twice as expensive as standard fibers is a boon for the Egyptian trade balance but also for employment. Two combined factors explain this recovery. First, the early 2017 devaluation of the Egyptian pound, now floating. This has enabled the country's production to gain in competitiveness against its main rival, the Californian prima. Then, the awareness by the authorities of the high demand – not met. This request arouses their white gold, provoked by the Welspun scandal.
Play the high-end card thoroughly
This year, Egypt has also banned lower quality seeds to fully play the high-end card. The country even received, to do this, an external boost from… Welspun. Making an act of contrition. The firm, which did not respond to our requests for information, has pledged, according to the Indian press, to spend $3 million alongside the ECA to support Egyptian cotton.