Gov’t plans massive sugar production in current season to resolve months-long sugar crisis

CAIRO – 16 March 2024: Egypt plans to produce about 140,000 tons of sugar during the ongoing season of local sugar beet supply, aiming to put an end to the long-standing sugar crisis affecting the country.

The Ministry of Supply and Internal Trade announced on Saturday that it has commenced the reception of sugar beet crops from farmers at the Abu Qurqas sugar factory, one of Egypt's major sugar production facilities located in the Minya governorate of Upper Egypt.

The ministry aims to receive nearly 1 million tons of sugar beet throughout the current season, which extends until August.

During this season, farmers have cultivated around 600,000 tons of sugar beet in various governorates.

Essam El-Din El-Bedewy, Chairman of the ministry-affiliated Egyptian Sugar and Integrated Industries Company (ESIIC), anticipates that the sugar crisis will be resolved within the next two weeks as sugar production from sugar beet increases across various factories.

El-Bedewy stated that the Abu Qurqas factory aims to produce 70,000 tons of sugar annually for the state, 35,000 tons for other parties, 30,000 tons of beet fodder for export, and 40 million liters of alcohol.

New incentives

To encourage farmers, the ministry has announced additional incentives per ton of sugar beet delivered to state-owned factories.

Farmers who supplied sugar beet to the factories from March 1 to 15 received LE 1,900 per ton, including a new incentive of LE 400 per ton.

Moreover, farmers supplying sugar beet to the state until the end of March will receive LE 1,750 per ton, including an additional incentive of LE 350.

Farmers supplying sugar beet from April 1 to 15 will receive LE 1,600 per ton, including LE 300 in incentives, and those supplying from mid-April to the end of April will receive LE 1,450 per ton, including LE 250 in incentives.

From May 1 until the end of the season, farmers will supply sugar beet to the state for LE 1,350, including LE 250 in incentives.

 

Addressing shortage

In recent months, citizens across the country have faced a shortage of white sugar.

In many places, they are only allowed to purchase one pack at a higher price than usual due to the scarcity.

Many experts attribute the sugar shortage to the limited supply from factories and producers, as well as potential hoarding practices.

In December, Prime Minister Mostafa Madbouli designated sugar, along with six other commodities, as strategic goods, imposing a ban on withholding these products.

Egypt has been grappling with a shortage of foreign currency in recent months.

However, the influx of foreign currency, including a mega $35 billion agreement with the UAE for the development project in Ras El Hekma on the North Coast, has breathed new life into the Egyptian economy.

Shortly after the signing of the agreement, Egypt's Cabinet approved the import of one million tons of sugar this year in early March to alleviate the shortage.