The Egyptian government has lifted its ban on sugar exports after three years, allowing shipments to resume in an effort to help producers reduce a surplus of nearly one million tonnes, according to Hassan El Fendi, head of the Sugar Division at the Federation of Egyptian Industries, reports EnterpriseAM.
El Fendi said the decision comes as local factories face mounting pressure from high operating costs and excess supply. With a strategic reserve sufficient for around 10 months and the sugar beet harvest now under way, the move is expected to provide immediate cash flow support to both state-owned and private producers.
He said exporters had repeatedly urged the government to reopen foreign markets, as production costs in Egypt are higher than global sugar prices. Delays in financial support sought by the industry have left exports as the only viable option for many refineries to raise funds and continue operations.
The timing of the decision is also linked to the expected expiry of a ban on raw sugar imports later this month, which could otherwise lead to an even larger supply glut in the domestic market.
El Fendi said the current availability of sugar makes it unnecessary to continue the export restrictions and added that domestic prices are expected to remain stable, even during the peak consumption period of Ramadan. A committee under the Ministry of Trade will regularly assess export volumes to ensure local supply is not disrupted.
Looking ahead, industry officials said producers may struggle to compete overseas due to low global prices. This could prompt calls for export incentives to bridge the gap between local production costs and international market rates.
