Egypt closes deal on 50k tons of imported sugar in response to rising prices

Cairo – December 21, 2023: Egypt's General Authority for Supply Commodities (GASC) announced on Wednesday that it has secured 50,000 tons worth of imported raw sugar in an effort to lower the rising prices of sugar in the local market.

The imported sugar is scheduled to arrive in February 2024, revealed a cabinet statement.

In the past few weeks, consumers have witnessed a significant surge in sugar prices, leading to LE 50 per kilo in certain locations, worsened by stockpiling. Some merchants decided to hoard sugar in anticipation of potential government price hikes.

Egypt’s sugar production from sugar cane is scheduled to begin in January, while production from sugar beets is set to start in March, according to the statement.

Minister of Supply and Internal Trade Ali Al-Moselhi shared on Facebook that the supply ministry recently pumped 245,000 tons of sugar into the markets, highlighting the substantial reserves in various governorates.

On Tuesday, the supply minister explained that the country’s strategic sugar reserves are enough to meet local consumption needs for nearly eight months.

Egypt revealed that it would be extending its ban on sugar exports last week as part of efforts to curb the price hikes, while Prime Minister Mostafa Madbouly ordered regular reports on sugar prices until they stabilize at around EGP 27 per kilo.

A major sugar producer, Egypt typically generates around 2.7 million tons annually from 300,000 feddans of sugar cane and 650,000 feddans of sugar beets, according to data from the Egyptian National Agriculture Library.