Egypt has imposed a three-month ban on refined sugar imports intended for trade, with exceptions granted only to companies that obtain approval from both the Ministry of Supply and the Ministry of Investment, according to a decree issued by Investment Minister Hassan El-Khatib, seen by Al Manassa.
Four informed sources who spoke to Al Manassa attributed the decision to an ample supply of sugar held by local producers, enough to meet market demand for an extended period. One source called for expanding the ban to include raw sugar to ensure market stability and protect domestic producers.
This is not the first such move. In June 2020, Egypt's Ministry of Trade and Industry imposed a three-month ban on white sugar imports, renewing it again that September.
Hassan Elfendi, head of the sugar division at the Federation of Egyptian Industries' food industries chamber, said the decision was driven by a surplus that currently covers all local demand. He added that the ongoing export ban helps retain domestic supply.
Egypt began prohibiting sugar exports in March 2023. The ban has since been extended multiple times, most recently in October, when authorities lengthened the restriction to six months.
The government aims to reach full self-sufficiency in sugar production next year, targeting an output of 3.2 million tons. The food industry accounts for 30% to 35% of local consumption, Elfendi explained to Al Manassa.
Egypt's sugar output rose 34% in the most recent season ending in August, reaching 2.964 million tons compared to 2.215 million tons the previous year. The increase was driven by expanded cultivation of sugar beet, according to Al Arabiya.
The import restriction supports local industry, reduces reliance on foreign supply, and helps relieve pressure on foreign currency reserves, member of the food commodities division at the Federation of Chambers of Commerce, Hazem El-Menoufi described to Al Manassa.
The move could encourage further investment in the domestic sugar sector and improve product quality, he added. Retail sugar prices currently range between 27 and 30 Egyptian pounds per kilogram.
Mostafa Abdel-Gawad, head of Egypt’s Sugar Crops Council, said that public and private beet sugar producers currently hold stockpiles totaling about 2 million tons.
Abdel-Gawad told Al Manassa the ban should have included raw sugar as well, to prevent undercutting by cheaper imports and to allow local producers to compete fairly. He further noted that imported raw sugar can cost as little as 19,000 pounds per ton—less than the cost of domestic refined sugar even after factoring in a refining cost of 4,000–5,000 pounds per ton.
The country’s strategic reserve is sufficient to meet domestic needs for the next nine months, a source familiar with the Ministry of Supply’s sugar inventory expounded. The ministry currently releases 95,000 tons of sugar monthly; 65,000 tons through ration cards and 30,000 tons to the open market, he added.
In December 2023, Egypt experienced a sugar shortage that pushed prices to as high as 50 pounds per kilogram, jumping from 39 pounds the preceding month. In March 2024, the Cabinet approved the importation of 1 million tons of sugar to ease the crisis.
