Egypt: Sugar prices rise while allowing exports and reducing producers’ losses

Sugar prices rose in the Egyptian market after allowing exports, after a period of decline due to increased production and abundant supply, bringing the price of a ton from 21 thousand pounds ($398.48) to 25 thousand pounds ($474.38), amid anticipation of the impact of the export decision on local prices and selling prices to consumers, in light of the continuation of local production and the availability of strategic stock. Egypt produces about 3 million tons of sugar annually, compared to local consumption of about 3.2 million tons, with a gap estimated at about 200 thousand tons. The rise in prices came after a period of decline as a result of the abundance of supply and the competition of imported sugar for the local product.

The Minister of Supply and Internal Trade, Sherif Farouk, said in statements last September that the strategic stock of sugar is sufficient for the country’s needs for about 11 months, indicating the availability of sufficient quantities to meet local consumption. Likewise, allowing the export of sugar was limited to specific quantities, after ensuring that it does not affect the needs of the local market. The minister then denied opening the door to export without restrictions. He also attributed the rise in prices to commercial practices that coincided with an increase in the prices of other commodities, and not to a lack of supply or export alone.

Head of the Sugar and Candy Division of the Food Industries Chamber of the Federation of Egyptian Industries, Hassan Al-Fandi, said that allowing the export of certain quantities of sugar was the main direct reason behind the rise in prices locally, explaining that the price of a ton rose from 21,000 pounds ($398.48) to 25,000 pounds ($474.38). Al-Fandi added in exclusive statements to Ofek News in Arabic that the price of a ton at the level of 21 thousand pounds ($398.48) was not fair to the producers, who incurred losses as a result of the decline in prices, indicating that allowing exports contributed to correcting prices and reducing producers’ losses after a period of declining prices due to the abundance of supply.

Egypt produces about 3 million tons of sugar annually, compared to local consumption of about 3.2 million tons, according to Al-Fandi, who indicated that the strategic stock is sufficient to cover local consumption for a period of up to 10 months, expecting stability in prices as long as the supply continues to meet the needs of the market. Globally, raw sugar futures rose 2.3% to 20.72 cents per pound, and white sugar futures rose 2.4% to $555.60 per ton, amid concerns about the impact of heavy rains linked to the El Niño climate phenomenon on the production of Brazil, one of the largest sugar producers in the world.

Estimates of sugar production in the European Union for the 2026-2027 season were also reduced by 8% due to the summer drought, while US production expectations fell by 0.8% to the lowest level since the 2019-2020 season. For his part, Head of the Foodstuffs Division at the Alexandria Chamber of Commerce, Hazem El Menoufy, said that the current increase in sugar prices represents a price correction, explaining that the price of a ton ranged between 21.5 thousand pounds ($408) and 22 thousand pounds ($417.46), while the cost of production ranged between 25 thousand pounds ($474.38) and 26 thousand pounds ($493.36).

Al-Menoufi added in exclusive statements to Ofek News in Arabic that the abundance of supply during the recent period, along with the availability of imported sugar at lower prices than local sugar, prompted producers to reduce selling prices to compete, which led to a decline in local prices to levels below the cost of production. As for consumers, Al-Menoufi said that the price of a kilogram of sugar rose from about 25 pounds ($0.47) to about 27 pounds ($0.51), stressing that the increase is not related to a shortage in supply or a decline in local supplies, in light of continued production and availability of stock.

He pointed out that the beet sugar production season is currently underway, while the cane sugar production season begins during the months of December and January, expecting prices to stabilize during the coming period and no further increases, with the availability of stock and the continuation of local production.