Egypt Allows Sugar Exports After Three-Year Pause Due to Market Surplus

The Egyptian government has decided to resume sugar exports after a three-year hiatus. The main reason for this move is the increase in the sugar surplus in the domestic market, which has led to the accumulation of significant stocks — their volume has reached 1 million tons.

This is reported by AgroReview

Sugar Surplus and Economic Pressure on the Industry

As noted by Hassan El Fendi, head of the sugar division of the Egyptian Federation of Industries, local producers have long been under pressure due to high operating costs and an oversupply of sugar. According to him, in a situation where stocks are sufficient to meet domestic demand for ten months, and the sugar beet harvesting season has already begun, allowing exports will help attract additional financial resources for the entire industry, both public and private sectors.

He stated that this decision was made in response to the growing pressure from local factories due to high operating costs and the excess supply of sugar in the domestic market. Considering that domestic sugar stocks are enough for 10 months, and the harvesting of sugar beets has already started, the decision to allow sugar exports will ensure the influx of funds necessary to finance the sectors, both for government and private producers.

Expectations Regarding Imports and Impact on Prices

The resumption of sugar exports is also linked to the impending expiration of the ban on importing raw sugar. This could lead to an even greater surplus in the domestic market of Egypt. According to Sada, the sugar surplus has already resulted in a decrease in prices within the country and financial losses for local producers.