Egypt allows sugar exports to ease surplus as producers struggle with rising stocks
Egypt has resumed sugar exports through end-2026 after a nearly three-year restriction, but shipments are allowed only after domestic needs are met. Producers cite excessive imports and high local costs behind surplus stocks. Egypt produces about 3 million tonnes annually, covering 85–88% of demand, while factories face cash-flow and farmer-payment challenges.
Egypt has decided to resume sugar exports until the end of 2026, with shipments allowed only after domestic requirements are met, as local producers face growing stocks and difficulty selling their output, Ahram Online reported.
The Ministry of Investment and Foreign Trade has permitted exports of all types of sugar, nearly three years after the country first restricted overseas shipments in early 2023. The export ban had been extended every three months since then.
The move could provide some relief to domestic sugar producers, who say excessive imports have contributed to the current surplus. Mustafa Abdel-Gawad, head of the Sugar Crops Council, said imported sugar is considerably cheaper than locally produced sugar and has put pressure on domestic factories.
International sugar prices have at times translated into an import cost of about LE18 per kg in Egypt, increasing to around LE19 after refining. Imported sugar can then be sold in the domestic market for between LE22 and just below LE30 per kg, giving traders a significant margin. In comparison, domestic production costs about LE25 per kg, Abdel-Gawad said.
Most imported sugar is cane sugar sourced from countries such as Brazil, India and Thailand. Lower costs for fertiliser, land and labour in these countries allow producers to offer sugar at prices below those faced by Egyptian manufacturers.
Egypt produces about three million tonnes of sugar annually, meeting around 85% to 88% of domestic demand, estimated at 3.4 million to 3.5 million tonnes. Sugar beet contributes about 77% of domestic output, or 2.1 million to 2.3 million tonnes, while sugarcane accounts for the remaining 23%, producing around 700,000 to 750,000 tonnes.
The annual production gap of about 400,000 to 600,000 tonnes is normally covered through imports. Producers say imports are necessary, but the problem arises when large volumes arrive while domestic factories are still holding unsold sugar.
Egypt has about 16 sugar factories. Eight are state-owned and mainly located in Upper Egypt, while the other eight, comprising public and private facilities, mainly process sugar beet and are located in the Delta, Daqahliya and Canal regions.
Abdel-Gawad called for imports to be linked more closely to actual domestic demand and available stocks, rather than allowing companies to bring in large quantities at their discretion.
Hussein Abu Saddam, head of the Farmers Syndicate, said high domestic production costs were also putting pressure on sugar factories. He said reducing payments to farmers was not a workable solution because current prices already provide only a reasonable return. Farmers receive LE2,500 per tonne for sugarcane and LE2,000 per tonne for sugar beet.
A former executive of a sugar-producing company said lower global sugar prices had encouraged private companies to increase imports of raw sugar. International prices have fallen to levels equivalent to about LE20,000 per tonne, while domestic production costs exceed LE25,000 per tonne before profit.
The executive also pointed to cash-flow problems at sugar companies. Some cane growers have yet to receive payments even though harvesting ended in April, while some beet farmers are also awaiting payment.
Abu Saddam warned that if the situation persists, sugar factories could eventually face difficulties in financing purchases of next year’s crops.
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Source : ChiniMandi
