Egypt will no longer subsidise cotton farmers. Reason: many Egyptian spinning factories have stopped buying Egyptian cotton. Local and international manufacturers have abandoned Egyptian long staple cotton as new technology enables them to extract large quantities of yarn from short-staple varieties as well.

Farmers who still want to grow cotton, particularly the long staple variety, will be on their own when it comes to finding buyers. Many farmers have turned to more lucrative crops and local textile firms have shifted their focus to creating low quality products with cheap raw cotton imports. Removing subsidies effectively means the end of Egyptian cotton. Market prices of cotton are currently low; without the subsidy, farmers will not be able to sustain the cost of planting cotton.

Cutting cotton subsidies is the latest measure taken by the government to reduce public expenses. Egypt’s long staple cotton, the finest in the world, is used in high quality clothing for its softness and strength. Cotton is cultivated on four per cent of the country’s arable land.

Egypt exported $83.8 million worth of raw cotton in 2013-14, down from $120.3 million the year before. Imports of raw cotton, however, grew to $117.8 million in the same year, up from $51.3 million.