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As it nears its circulation ... Learn about the details of the new cotton trading mechanism


The government succeeded in implementing the new mechanism for the circulation of cotton in 4 governorates during the past year, and for the second year in a row after it was requested first in the governorates of Beni Suef and Fayoum .. Know the details of the mechanism.

 

1- Over the course of two consecutive years 2019 and 2020, the Ministry of Public Business Sector - in light of the recommendations of the Ministerial Committee for Cotton - has experimented with a new system for receiving and trading cotton, which includes an adequate price for farmers based on the bidding system, and the preservation of the cotton from pollution.

 

2- An executive committee was formed from representatives of the ministries of agriculture, land reclamation, trade, industry and the public business sector to lay down the plan and implementation mechanisms for the new cotton trade system. The experiment, in its first year, included the governorates of Faiyum, Beni and Suef.

 

3- In 2020, the Ministerial Economic Group agreed to implement the system in four governorates (Fayoum - Beni Suef - Beheira - Al Sharqiya). The system was successfully implemented with the participation of about 12 major trade companies from the private sector.

 

4- The system depends on identifying centers for receiving cotton from farmers in the aforementioned governorates, distributed over the administrative centers and according to the areas cultivated with cotton.

 

5- Farmers shall be handed bags made of jute and a cotton roller to be knitted in order to protect the cotton from contamination, and to conduct public auctions on the cotton received by the centers.

 

6- The farmer gets 70% of the value of the crop from the company that is the head of the auction on the day after the auction, and the rest of the amount (30%) within a week after determining the difference in ranks and the clearance rate, and payment is made to farmers through the banking system.

 

7- It is expected that the new mechanism will be implemented in all governorates for the new season.

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