Egypt: Government Backtracks On Its Policy and Will Once Again Subsidize the Cotton Crop

Egypt’s recently revised government has backtracked on the policy of eliminating cotton subsidies to the sector and has allocated cash subsidies valued at LE 261.7 million ($33 million) to buy the MY2015/16 cotton crop. The government, through the Holding Company for Textile, Weaving and Spinning (HCTWS), will buy farmers’ medium and short staple cotton grown in Upper Egypt at LE 1,100 ($ 137.5) per qintar (or $28/bale), and the long and extra-long staple cotton grown in the Delta region at LE 1,250 ($156) per qintar (or $32/bale). 

Egypt: Government Backtracks On Its Policy and Will Once Again Subsidize the Cotton Crop