Egypt’s yarn price per kilogram has more than quadrupled

The price of yarn per kilogram in Egypt has more than quadrupled. The rise in raw materials has caused the Egyptian textile industry to experience “a very critical situation.” Currently, many textile factories in Egypt have stopped operating, and many factories are gradually cutting off their labor force. To better support the development of the country’s textile industry, small and micro enterprises and handicrafts, the Egyptian Parliament’s Upper House has sought funding from Switzerland to better support the development of the country’s textile industry, small and micro enterprises and handicrafts, while promoting the construction of national infrastructure. .
The price of yarn per kilogram in Egypt has more than quadrupled. Mohamedel-Morshedi, president of the Textile Chamber of Commerce of the Egyptian Federation of Industries, believes that Egypt’s decades-old textile industry is experiencing “a very critical situation.” Last September, the same yarn crisis hit Egypt’s domestic textile industry, causing some production companies to Exit the market as domestic and international yarn prices hit record highs. According to him, the current cotton price has reached the highest level since the American Civil War (1861-1865), when the price of cotton rose from 10 cents/pound in 1860 to $1.90/pound in 1863-1864.
Approximately 51% of textile factories in the delta city of al-Mahalla El-Kobra have ceased operations, and the remaining factories have gradually laid off their workforce. In Al-Mahalla, the textile capital of Egypt, 650,000 workers in the Egyptian textile industry are facing unemployment. After the January 25 revolution, Egypt currently needs to make great efforts to promote the wheels of the economy. said Mohssenel-gilani, Chairman of the Weaving, Textile, Cotton and Clothing Holding Company. “The government will inject funds into state-owned enterprises facing difficulties. However, it does not intend to inject funds into private enterprises. The holding company hopes that the government will take rescue measures to solve the difficulties with fair yarn prices.”
According to the central agency Public Mobilization and Statistics (CAPMAS) report, Egyptian cotton exports reached 2.2 million quintals in the 2010/11 fiscal year. Domestic manufacturing companies consume 4 million quintals every year to keep their production lines running. Each quintal is equivalent to 150 kilograms of cotton, or 45 kilograms of ginning.
The International Cotton Advisory Committee (icac) reported that global cotton prices actually fell in April, with the cotlooka index falling to 1.73 cents/pound from the highest record of $2.44/pound last month. But prices remain at historically high levels. But the London-based organization predicts demand for yarn will fall due to high cotton prices and competition from synthetic fibers. Egyptian factories are hit by a severe crisis of raw material shortages. There is no yarn or cotton in the market. In time private factories have also closed. Industry insiders called on the government to take immediate measures to save the textile industry.
According to Egyptian reports, the Upper House of the Egyptian Parliament has sought funding from Switzerland to better support the development of the country’s textile industry, small and micro enterprises and handicrafts, while promoting the construction of national infrastructure. Egypt’s Joint Committee, composed of representatives of the finance and public administration departments of the upper house, said the demand was based on an agreement signed between the two countries, which includes strengthening cooperation in finance, logistics and human resources between the two countries. The Egyptian Joint Committee also requested increased support for the construction of its comprehensive projects, including financial support for basic inputs in the textile industry and increased support for infrastructure construction projects to meet the needs of Egyptian provinces for industry development.