EGYPT has further extended the export ban on sugar.
This comes in response to the alarming increase in sugar prices over the past weeks, prompting concerns among residents in Cairo.
“We were all surprised by what happened. Just like when other commodity prices increased, we are now trying to reduce our consumption,“ according to Noha – Resident in Cairo, Egypt.
“I have to buy sugar and its products because I have a big family, four children and my grandchildren. I used to buy a cake for 30 Egyptian pounds (one U.S. dollar), now it’s for 60 (two U.S. dollars). Prices have doubled. It should be more affordable for people,“ Faramaway – Resident in Cairo, Egypt stated.
According to Mohy Abdel Salam, an economic researcher in Egypt, apart from geopolitical issues, especially tensions between Russia and Ukraine and the crisis in Gaza, the depreciation of Egypt’s local currency is a significant factor contributing to inflation.
“The Russia-Ukraine conflict and the crisis in Gaza have led to supply chain disruptions that have caused sugar prices to rise in the Egyptian and international markets. Another issue is climate change which has affected crops, especially in two of the largest exporters, namely India and Thailand, whose yield from several crops has dropped significantly due to droughts,“ Mohy Abdel Salam – Economic Researcher in Egypt stated.
Egypt currently produces 2.7-M tons of sugar annually, exporting half a million tons.
With the country’s demand at 3.5-M tons per year, an additional two million tons are required.
“The government cracked down on traders who starved the market to raise prices, and many of them have been arrested. The government also increased the supply of subsidized sugar to low-income earners, which has balanced the market prices,“ Adel Nasser – Egyptian Senator stated.
Additionally, Egyptian Senator Adel Nasser outlined a long-term solution.
“The state is cultivating more plots of land. It’s a good comprehensive plan to cultivate about 5 million feddans (about 2.1 million hectares), including 350,000 feddans (about 147,000 hectares) of sugar beets, sugar cane, and wheat, as well as other strategic crops like oil, wheat, and sugar. If successful, we will not have to import these commodities after the 2024-2025 period,“ Nasser added.
