Egypt’s Public Enterprise Minister Hisham Tawfik said the establishment of six new cotton gins is underway, with three of the gins slated to begin operations by the end of 2020, and the others in 2021.
In an official statement on Sunday, Tawfik said that the six cotton facilities are expected to gin the major production of Egypt’s cotton in accordance with the latest international systems, which will raise the Egyptian cotton prices in the global markets and increase its uses by public and private spinning and fabric companies.
His comments came during a meeting held with representatives of Egypt’s Cotton Association.
The minister explained that the new cotton trading system, which has been implemented recently in Fayoum and Beni Suef governorates, has helped in improving the cotton trade and overcoming all obstacles that negatively affected Egyptian cotton quality, especially with regards to the collecting and packaging process.
He added that the new system will be circulated throughout the country in the new cotton harvest season, which begins in September 2020, with the private sector playing a role in determining cotton bid opening price, according to recommendations placed by a ministerial committee for cotton.
The ministry has adopted a new system for upgrading Egyptian cotton, in coordination with the ministries of agriculture, trade and industry, to improve the reputation of Egyptian cotton and to open new markets for it.
In October, the public enterprise ministry announced that around 117 quintals of the Egyptian cotton, totaling EGP 237 million ($15 million), have been sold since the new system for cotton sale came into effect, adding that the new system guarantees fair prices for farmers, as cotton selling is implemented through an auction, and the pricing policy is in line with global cotton prices.