Strategising for cotton
EXPERTS drafting a long-term strategy for the Egyptian cotton sector stressed this week the need to further liberalise the cotton and textile market in Egypt to enable the country to compete effectively as an exporter of cotton lint, textiles and apparel, reports Niveen Wahish .
The draft strategy, developed by the Egyptian German Cotton Sector Promotion Programme in cooperation with the Cotton Council, is an attempt to boost the Egyptian cotton sector's ability to withstand enormous external and internal challenges.
Externally, the world market situation is the worst it has been in two decades and prices are at their lowest level. Internally, Egyptian cotton has experienced, over the past decade, a marked decline in cultivated area, production and domestic consumption. Moreover, despite improved exports, large carryover stocks of unsold cotton lint have accumulated in inventory. Since the 2002/2003 crop is expected to be large, additional supply will be brought onto the market.
To save this strategic crop, whose cultivation represents the main source of income for more than half a million rural households, the strategy looks at four main areas where key decisions are needed regarding future orientation.
For starters, the strategy focusses on the importance of a stable and competitive marketing framework through which market forces, rather than administrative decisions, govern the market. Rules and regulations must remain constant to enable the various sector players to plan ahead. Moreover, the strategy stipulates the removal of bans on exports of certain varieties or grades, as well as restrictions on price negotiations. Prices should be based on supply and demand to avoid any carryover stocks.
Under the strategy, farmers would be able to sell their cotton to the highest bidder and benefit from deficiency payments in years when market prices fall below guaranteed floor prices, regardless of their chosen marketing channel. Egyptian cotton traders would be allowed to sell all their cotton in international and domestic markets at freely negotiated prices.
Meanwhile, new breeding methods need to be developed to produce high-yield varieties and better quality cotton.
In the area of cotton production and grinning of seed cotton, the strategy recommends that Egyptian cotton growers be given access to profitable production technologies, which contribute to a significant increase in productivity and farm income.
And, as production techniques improve, Egyptian spinners need to have full access to cheap cotton lint, the strategy stipulates. Privatisation must be accelerated and foreign spinners encouraged to establish production facilities in Egypt.
Indonesian connection
AS PART of efforts to boost bilateral trade relations between Egypt and Indonesia, Minister of Foreign Trade Youssef Boutros Ghali signed a number of contracts with the Indonesian minister of agriculture, who was in Cairo this week.
The first contract will have Egypt exporting 400,000 tons of phosphate valued at $12 million to Indonesia during 2003.
Under the terms of a memorandum of understanding signed by both sides, the Egyptian Company for Sugar and Integrated Industries will receive $25 million to take part in restructuring and modernising Indonesian sugar factories in a first stage.
The ministers agreed that Egypt will export cotton, rice and natural juice to Indonesia and Indonesia will export palm oil, meat and wood to Egypt.
Encouraging cooperation in manufacturing buses and railway equipment was also discussed during the meeting.
Additionally, task forces will be set up in both countries to identify the commodities that are highly demand in the Egyptian and Indonesian markets.
UNDP workshop
A NATIONAL Human Development Report (NHDR) training workshop organised by the United Nations Development Programme (UNDP) for Arab states was held in Cairo from 17 to 19 February.
The workshop, attended by 50 participants from over 20 Arab countries, aimed at exchanging experiences and discussing issues related to the preparation and dissemination of national human development reports.
The workshop was also an opportunity for UNDP officials and Arab government representatives to brainstorm on ways to improve quality and achieve excellence in issuing national reports in Arab countries.
According to one participant, the workshop was a good opportunity to learn from the work of other countries and network with colleagues struggling with similar challenges.
Some of the problems identified by teams working on the national reports include the scarcity and reliability of data and formulation of realistic and operational policy recommendations.
The NHDRs are one of the UNDP's well-known tools produced in more than 130 countries. The reports advocate an approach to development that expands people's choices.
Japanese grants
THE JAPANESE government has provided grants worth $167,602 to three non-governmental organisations to support medical and women's development projects in Egypt.
Japanese Ambassador to Cairo Kazuyoshi Urabe last week signed three contracts for Japanese grant assistance with the chairmen of three NGOs.
The first grant went to the Egyptian Association for the Prevention of Blindness, established in 1996 to prevent the spread of eye diseases. The grant, worth $56,608, will provide the association with medical equipment and a laser machine.
The second grant will be given to Harpur Memorial Hospital in Menoufiya governorate, which offers area residents high standard medical treatment at low cost. The grant, amounting to $81,967, will provide the hospital with high technology medical equipment.
The third grant, worth $29,627, will go to the Centre for Development and Population Activities to construct the Women's Centre of Abguig Community Development Association in Fayoum governorate. The centre will include a kindergarten, a small school, a library, a women's club and a handicraft workshop.
The grants are provided by the Japanese government's Assistance Scheme for Grassroots Projects by NGOs, which began in Egypt in 1994. Since then, 80 projects have been implemented under the scheme.
