CAIRO: Minister of Agriculture told parliament Tuesday he suspects that a plot against Egypt is behind the lack of foreign demand for Egyptian cotton.
Minister Mohamed Reda Ismail said that for an unknown reason no countries have shown interest in purchasing Egyptian cotton.
He compared the market with last year, when 36 countries were eager to buy at least one ton of the finest Egyptian cotton.
"We do not know what is being plotted against us or the real reason for these countries to abstain from buying Egyptian cotton," he said.
Ismail pointed out that local companies also refused to buy cotton from farmers because they are aware that they will not be able to sell it, adding that the government had ordered the Development and Agricultural Credit Bank to allocate LE 300 million to public sector companies to purchase the produce.
"The holding companies only received the money today [Tuesday] although it was available in the bank since last month," he said.
He said local producer had already imported their cotton needs.
The minister said that local cotton gins and factories are outdated and inadequate to process Egyptian cotton.
"More than 10 years ago the government asked these factories to undergo a major overhaul, but they didn’t because they were afraid of privatization although the European Union was eager to support the development of the textile industry in Egypt," he said.
The minister’s statement came in response to several interpellations regarding the cotton crop crisis. The MPs held the government responsible for the deterioration of Egyptian long staple cotton.
"Farmers harvested their crop on Aug. 15 but they can’t sell it until today. Two months later, the government discussed the problem and decreed an import ban on yarn, which was too late because the yarn had already been imported," Abdel Rahman Shokry, MP and head of the Farmers’ Syndicate, said.
According to the minister, the plan for cultivating cotton is prepared annually based on the needs of exporters and manufacturers.
Shokry also criticized the fact that the Development and Agricultural Credit Bank is insisting that the farmers pay their debt, despite having failed to sell their produce.
Ismail called upon the bank not to impose any penalties on late payments.
