Demand is slowly weakening across the globe, lessening the upward
pressure on prices and prompting some Egyptian farmers to consider
alternative crops. However, inclement weather can strike with virtually
no warning, as seen last year in places like China, Australia and
Pakistan. This year’s global crop could be lessened if, for example,
drought conditions persist in Texas, which supplies half of the cotton
produced in the United States, the world’s top exporter.
FCE has warned government officials about the grave consequences of
any type of export ban, particularly on contracts that have already been
executed, saying the damage such a decision would do to Egypt’s future
attractiveness as a trading partner would be irreparable According to Ahmed El Dabbah, export manager for the Arab Trade &
Investment & Cotton Trading com. (ATICOT), the four main types of
Egyptian cotton can be split into two groups: .
• Giza 80 and 90, which are comparable to Greek or Uzbeki cotton.
• Giza 86 and 88, which are long/extra-long staple, comparable to U.S. Pima .
“The ban on exports should apply only to the first group,” El Dabbah
says. “The cotton in the second group is not needed by our spinners,
because the yarns that they produce don’t require long or extra-long
staple cotton. Spinners in China and India, on the other hand, are in
need of these long staple cottons because they produce such very good
yarns..
.
“If the government puts an export ban on the second group, the Egyptian
cotton industry will lose two things: the excellent business reputation
it has built over many years, and a huge amount of money. We are a
country that needs revenue now to build an improved economy, and the
cotton business is worth more than $500 million to Egypt. The damage to
Egypt’s reputation as a reliable business partner as well as the economy
will be the very serious consequences if the government bans all cotton
exports.” .
Date:5/18/2011
Source:Egytex.com