Egypt has authorized the export of all sugar types through the end of the year, provided local market demands are met, a regulatory move designed to relieve mounting financial strain on domestic refiners and unlock billions in back pay owed to farmers.
The trade ministry decree published Sunday allows the supply ministry to determine exportable volumes—estimated by agricultural officials at between 500,000 and 1 million metric tons—subject to final approval by the Minister of Investment.
The policy shift comes as national sugar reserves surpassed 3 million tons for the first time, depressing local prices even amidst the peak demand for confectionery during the season of prophet Mohammad’s birthday.
By tapping into rising global sugar prices, currently around $550 per ton compared to $470 ten days ago, officials hope processors can generate the liquidity needed to settle unpaid debts to sugar beet and sugarcane suppliers, Mostafa Abdel Gawwad, head of the Sugar Crops Council at the Agriculture Ministry told Al Manassa.
Sugarcane growers have faced severe payment delays since the harvest season opened in late December, despite earlier pledges by the Supply Ministry’s Food Industries Holding Company to settle accounts within hours of delivery.
While the official harvest ended in May, outstanding dues owed by state-linked refiners peaked at over 8 billion Egyptian pounds ($152.38 million) before dropping to roughly 4 billion pounds ($76.19 million) currently, a senior official at the supply ministry’s Sugar & Integrated Industries Company had previously explained to Al Manassa.
Abdel Gawwad said exporting up to 1 million tons will not compromise local supply given the record stock levels. He added that refiners will only export if overseas prices offer better returns than domestic sales or yield necessary operational cash flow.
Former sugar division head at the Federation of Egyptian Industries Hassan El-Fandi noted that previous over-importation during periods of low global prices flooded the local market, driving domestic wholesale rates down to 20,000 to 22,000 EGP ($381 to $419) per ton—below production costs for some factories.
With global prices near $550 per ton (roughly 28,000 EGP or $533 before shipping), exports offer a path to restore factory margins, provided clear caps are enforced so local supply does not drop below the national annual consumption baseline of 3.5 million tons.
The decision reverses a temporary export ban implemented in February under Investment Ministry Decree No. 189 of 2026, which extended a prior three-year restriction following brief price spikes during a previous export trial in January.
