CEF to set minimum limit to prices ofEgyptian cotton exports

06 Feb 2019

Cairo: Cotton Exporters Syndicate looks to hold extraordinary general assembly meeting to explore exporting local cotton at the minimum price limit of 125 cents per pound, reflecting a desire to face off to speculations of junior traders which triggered huge price cuts.

'At a time mega companies are getting loans at the staggering 20 percent rate, smaller entities, which are getting loans at 5 percent rate within initiative of the Central Bank of Egypt supporting medium and small-sized enterprises, are accessing the market,' said chairman of CES Azza Qabari.

More than 69 traders buying cotton from farmers under the umbrella of CES rely on banking loans to finance their cotton purchases.

Up to EGP6bn banking loans have been used during the marketing season of 2018/2019 to purchase 2.9 million kantar, according to former chairman of CEF Nabil Al-Santrisi.

Cotton traders will be invited to attend the upcoming CEF's meeting in order to vote on setting a minimum price limit, she said, adding that cotton crop is being exported at prices falling below its real value.

In first statement delivered by her upon assuming the post of chairman of CEF to Al-Mal newspaper, Qabari said that Egyptian cotton is sold in world markets at prices ranging from 105 and 107 cents per pound, down by EGP300 per Qanter as compared with those trading at world cotton exchanges.

'The fair price of the Egyptian cotton must be lower than the U.S cotton by 15 cents, a far cry from the current bottom of 140 cents,' said Qabari whose term as CEF's chairman will terminate in 2021.

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