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The company said last Thursday that the Cotton Egypt Association had granted it the right to use its logo through 2022 following a review of its supply chain. Welspun said it now plans to invest $3 million to market Egyptian cotton worldwide and may open a plant in Egypt. "We foresee an increase in demand for Egyptian cotton and find an ideal condition for making Egypt one of our hubs for sourcing and manufacturing Egyptian cotton products," Welspun said. Schuman says measures such as DNA testing and a system of international auditing will reduce imitation Egyptian cotton to 30 percent of world supply by the end of this year. FLOAT TO FORTUNE Exporters and spinners say one of the biggest challenges is supply: there simply isn't much Egyptian cotton. This is set to change. Farmers and exporters expect a comeback for the crop, spurred by the country's decision to float its currency, halving its value overnight but helping push local cotton prices sky high -- to about 3,200 Egyptian pounds ($174) per qintar (160 kg) from 1,200 Egyptian pounds a few months earlier. "There was no hope in cotton until this season ... Now all the farmers are going to grow it," said Nile Delta farmer Maher Allam, who plans to quadruple his cotton area. Egypt's sunny skies and superior seed help it grow a cotton known for unusually long fibres that produce a light durable fabric with an attractive sheen and soft touch. Long-staple sells at 155 cents per lb, about twice the price of common short-staple cotton.
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The U.S. Department of Treasury on Monday sanctioned El Aissami and an associate, Samark Lopez, on accusations of masterminding an international network shipping drugs to Mexico and the United States. There was no immediate response from Venezuela's government, although El Aissami, 42, did tweet pictures of himself receiving an official Chinese delegation in Caracas. But Lopez said in a statement on his website late on Monday that the listings appeared "politically motivated." "Mr. Lopez is a businessman who has known Tareck El Aissami for a number of years," the statement said. "Mr. Lopez is not a government official and has not engaged in drug trafficking. "Samark Lopez will seek all legal, administrative, and judicial remedies possible." President Nicolas Maduro's government has frequently cast U.S. and opposition accusations of drug-trafficking, corruption and human rights abuses as a false pretext to justify meddling in Venezuela and a push to topple him. Maduro, 54, narrowly won election in 2013 to replace the late Hugo Chavez, but his popularity has plummeted amid a brutal economic crisis in the nation of 30 million people. El Aissami, whom local media report is of Syrian and Lebanese extraction, grew up poor in the Andean state of Merida and went on to study law and criminology.
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