Contractual farming of cotton applied for first time

The Ministry of Agriculture began implementing a contractual system for farming the cotton crop for the first time, and it contracted with private sector companies to sell the crop’s yield from 34,000 feddans.

The ministry seeks to market as much of the crop as possible before the harvest in order to encourage farmers to expand local production to cover the needs of the government and private spinners.

Waleed Al-Saadany, chairperson of the Egyptian Cotton Trading Organisation Committee, said that three private sector companies contracted for the harvest of 34,000 feddans in Upper Egypt for cotton type Giza 95.

He estimated the production of the contracted area at about 240,000 kantars, with seven kantars per feddan, to sell at market price at the time of harvest, which should be no less than the guaranteed prices announced by the government for the current season.

The cabinet raised cotton’s guaranteed prices this season by EGP 300 per kantar to reach EGP 2,500 for Upper Egyptian cotton and EGP 2,700 for Lower Egyptian harvests, based on the type.