Why farmers reject Egypt’s new cotton trade strategy
The Egyptian government has announced a new trading system for cotton, which would be sold through public bidding, raising the ire of farmers who already suffer from severe losses.
In an attempt to restore the Egyptian cotton’s global standing, the Egyptian Ministry of Public Business Sector unveiled June 30 a new cotton trading system in Egypt that will be piloted in Fayoum and Beni Suef governorates during the current harvest season. The system aims at overcoming the disadvantages of the previous trading system and achieving the highest returns for farmers.
In an Aug. 6 meeting with the heads of cotton trade companies from the private and public sectors to present the new trading system for cotton, Minister of Public Business Sector Hisham Tawfik explained that 17 centers to receive cotton from farmers directly — without an intermediary — will be designated in the governorates of Fayoum and Beni Suef. Cotton will only be received through identification cards and agricultural holding cards, to prevent any fraud by intermediaries.
