Egypt aims to double its production of ‘white gold’

Egypt aims to double production of its most famous export, the silky soft cotton once known as “white gold”, after a period of slumping output, an Agriculture Ministry spokesman said on Saturday.

Hamed Abdel-Dayem told Reuters production should rise to 1.4 million qintar (160 kg) in the 2017-18 fiscal year that started in July from 700,000 qintar a year earlier. All the cotton will be exported.

The government aims to increase the price of the long staple cotton to more than 3000 Egyptian pounds ($168.07) per qintar, which will all be exported, the spokesman said.

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Production of the cotton, used in luxury bedding, has fallen sharply since 2011, a year of political upheaval that coincided with looser regulations that degraded the quality of local cotton.

Egypt’s sunny skies and superior seed help it grow a cotton known for unusually long fibres that produce a light durable fabric with an attractive sheen and soft touch.

Long-staple sells at 155 US cents per pound, about twice the price of common short-staple cotton.

Its return to world markets could provide a lucrative export opportunity at a time when Egypt has a huge trade deficit and is seeking to relaunch its stagnant economy.

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In 2016 Egypt banned all but the highest quality cotton seed, dramatically shrinking the area under cultivation but restoring quality, in a bid to save its historic crop.

This year Egypt grew about 220,000 acres (89,000 hectares) of long-staple cotton compared with 130,000 acres (52,600 hectares) in 2016-2107, Abdel-Dayem said.

Farmers, spinners, and exporters say the weakness of the Egyptian pound following its flotation in November and a scandal over the alleged sale of falsely labelled Egyptian cotton have increased demand for the real thing, injecting life into a historic industry on its deathbed.