According to the latest foreign news, the Egyptian government has decided to increase subsidies for cotton purchases by textile mills and exporters this year, and the subsidy amount will be increased from 200 million Egyptian pounds to 500 million Egyptian pounds.
The Egyptian government stated that the decision will promote the purchase of Egyptian cotton by textile mills and exporters and reduce cotton imports. It is understood that the subsidy standard is that textile mills can receive 50 Egyptian pounds per qantar (1 qantar is approximately 45-50 kilograms), and exporters can receive 200 Egyptian pounds per qantar. In other words, textile mills or exporters can receive corresponding subsidies as long as they purchase Egyptian cotton this year. Of the total subsidy of 500 million Egyptian pounds, 350 million will be used to subsidize textile mills and exporters, and the other 150 million will be used to subsidize cotton farmers to support their purchase of cotton seeds and fertilizers. The Egyptian government expects that this initiative will increase Egyptian cotton production.
According to statistics from the Egyptian Center for Public Mobilization and Statistics (CAPMAS), in the second quarter of this year, Egypt’s domestic textile mills’ purchases of Egyptian cotton decreased by 79.9% year-on-year, and exporters’ purchases fell by 46.5%.
