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.

According to the new system, special packs made of jute to protect the cotton from contamination will be made available to farmers in the first week of August at the new cotton centers, which are run by a subsidiary of the Cotton, Spinning, Weaving & Clothing Holding Company, Egypt's largest end consumer.

Tawfik further said that sales will be made through public bidding based on the global price in the cotton exchange market.