ALCOTEXA delays setting of Egyptian cotton prices
The Alexandria-based Egyptian Cotton Exporters Association (ALCOTEXA) has announced it will declare the sale prices of cotton exports later this month, reported Al-Hayat. The delay was attributed to the September terror attacks in the US, which had hindered sea shipments, raised insurance and transportation fees and aggravated recession in international textile markets.
ALCOTEXA sources stated the delay would enable them to put out competitive prices, once these new factors were taken into consideration. Founded In 1932, ALCOTEXA is a non-profit organization, which sets the export policy and the sale prices of exported cotton at the beginning of the cotton season.
According to US Department of Agriculture estimations, the cotton cultivation area is expected to increase by about 41 percent, while production is forecasted to rise 25 percent in the marketing year (MY) 2001/2002. Exports for 2001/02 are expected to be 19 percent lower than the previous season.
A downward trend is also expected in local cotton consumption, attributed to the higher price of domestic cotton. This high price of Egyptian cotton encouraged imports of large quantities of cheap cotton yarn mainly from Pakistan and India to be used in the production of course count fabrics.
Local sources estimate the Egyptian cotton output at 5.5 million kentars by the end of the present season, compared with 4.2 million kentars last season. Egypt exports large volumes of cotton to Turkey and Europe. — (Mena Report)
© 2001 Mena Report (www.menareport.com)