The Agriculture Ministry said it will apply the 'contract farming' system on the next cotton harvest.
Fifteen state-run weaving and spinning companies have agreed to buy 700,000 quintals of extra-long staple cotton, Agriculture Minister Adel el Beltagy said.
Contract farming involves agricultural production being carried out in conformity with an agreement between the buyer and farm producers. Sometimes it involves the buyer specifying the quality required and the price, with the farmer agreeing to deliver on a future date.