Despite a production surplus and the continuation of the local sugarcane delivery season, sugar prices have risen by about 2,000 Egyptian pounds per ton, following the authorities’ decision to allow the export of surplus sugar for the first time in about three years, two traders told Al Manassa.
The government allowed the resumption of sugar exports in January, a move aimed at absorbing a domestic surplus of nearly 1 million tons that had caused prices to fall and left manufacturers with noticeable losses.
The ban was due to remain in effect until March, according to a decision by Investment and Foreign Trade Minister Hassan El-Khatib in October, in which he confirmed the continuation of the sugar export ban for another six months starting in October.
The decision, renewed since 2023, bans the export of all types of sugar, except for quantities surplus to the needs of the local market, as estimated by the Supply Ministry, provided the Investment and Foreign Trade Ministry approves. This exception allowed the government to decide to export the surplus.
Ahmed Tablawy, head of a sugar packing company, said sugar prices rose by about 2,000 pounds (about $43) per ton, increasing from 23,000 to 25,000 pounds ($490 to $530) for factories immediately after the government allowed sugar exports, which raised the recommended retail price to between 26 and 28 pounds per kilogram.
Tablawy told Al Manassa that, despite the existence of a surplus and large inventories held by companies, the timing of the decision to allow exports is wrong given the approach of Ramadan, which sees higher rates of sugar consumption.
Agreeing with him, Yehia Kasseb, a former member of the Foodstuffs and Grocery Division at the Giza Chamber of Commerce and head of a sugar packing company, said the decision has thrown pricing into disarray, and increased consumption may drive prices higher.
The sugarcane delivery season to state-owned sugar factories began in late December, with the Supply Ministry aiming to receive about 6 million tons to produce local sugar.
For their part, a sales manager at a government-affiliated sugar company said the quantities targeted for export are small, noting the company aims to export about 35,000 tons out of total current inventory of about 200,000 tons, just 17.5% of its stock.
The source told Al Manassa, asking that their name not be published, that companies are trying to get rid of stagnant inventory, with a surplus in the local market of about 1 million tons and the approach of the beet sugar production season at the end of this month and in March.
The source said exports take place with the approval of the supply minister, and according to inventory levels that differ from one company to another. The percentage allocated for export is determined accordingly.
In November, the import of sugar was banned for three months in a move to support local industry and reduce pressure on foreign currency reserves, given that imported sugar can be 4,000 to 5,000 pounds per ton cheaper.
Egypt consumes 3.2 million tons of sugar annually. Prices at traders have surged since 2024 amid difficulties importing to bridge the gap in local production.
