Egypt : Gov’t opens sugar export taps for first time in three years to drain 1 mn ton glut
Egypt has resumed sugar exports after three years to reduce a 1-million-ton surplus and ease liquidity pressures on producers. With ample reserves and the beet harvest underway, exports are seen as vital for factory survival, while authorities will closely monitor volumes to protect domestic supply and prices.
The government has officially resumed sugar exports to help local producers clear a massive 1-mn-ton inventory surplus, Federation of Egyptian Industries Sugar Division head Hassan El Fendi tells EnterpriseAM. With a 10-month strategic reserve in place and the beet harvest beginning, the decision to reverse the export ban after three years is designed to provide an immediate liquidity injection for state and private factories struggling with high overheads.
Why this matters: The decision to permit exports comes as a response to producer demands. With local production costs exceeding global prices and delays in the financing initiatives requested by the sector, exporting has become the sole lifeline for refineries to generate liquidity and avoid bankruptcy. The timing is also not coincidental, with the ban on raw sugar imports set to expire this month, threatening to flood the domestic market with even more low-cost supply.
The current abundance “negates any feasibility of continuing the export ban,” and further ensures domestic price stability even during the peak consumption period of Ramadan, Al Fendi said. The Trade Ministry’s committee overseeing the sugar trade will meet periodically to review permitted export volumes, ensuring no sudden shortages occur in the local market.
What’s next? The primary challenge now lies in the companies’ ability to compete in foreign markets at current low global prices. This may soon lead to calls for export subsidies to compensate for the disparity in local production costs.
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Source : Enterprise AM
