Just one week after Egypt imposed a ban on cotton imports in an effort to boost its own cotton sector, the country revoked the ban following commentary that it would instead be detrimental to the industry.
Egypt instituted the ban to protect local farmers who were floundering in the face of the downswing in demand there.
The country’s Textile Export Council and the Federation of Egyptian Industries appealed to the government to pull the potentially costly decision, noting that the import ban would adversely affect factories, according to Middle East News.
Demand for Egypt’s high-quality, extra-long staple cotton has been on the decline in recent years as local manufacturers switch to lower-quality fiber. The U.S. Department of Agriculture projects production this season will drop to 340,000 bales, the lowest in more than 50 years.
Cotton imports for this year have been permitted, but a government committee will review the country’s cotton policy and submit new proposals.