Egypt: Cotton and Products Annual

Like many countries in the world, Egypt has been greatly affected by the Russian war on Ukraine, which has caused strain on the Egyptian economy. In 2022, the Egyptian government struggled to rein in inflation caused by rising food and energy prices. In October 2022, Egypt decided to sharply devalue the currency by the end of 2022, inflation reached almost 22 percent. This greatly affected the cotton industry by low international demand for cotton and challenges with imports. Quantities for domestic use of local cotton have massively increased to address the limited imports and high prices caused by the high exchange rate of the US dollar. The cotton industry has also experienced a change in the way Egyptian farmers buy cotton. Currently, the farmers buy via an auction, which was created to try and guarantee the highest returns for cotton growers. Therefore, the purchase prices are high, and area is expected to increase as farmers were incentivized to plant more.