Minister of Investment and Foreign Trade Hassan Al-Khatib announced in November that sugar imports will be halted for three months with the aim of protecting the domestic industry after the market recorded near saturation.
In recent months the market has seen a notable rise in sugar production and a decline in prices due to abundant supply and strong competition among producers.
Government sources said the decision seeks to restore balance to the market and shield the national industry from additional pressures that could result from allowing more imported sugar into an already saturated market.
The decision followed complaints by local companies during a meeting with the minister, in which they voiced concerns over production surpluses and the ongoing export ban on sugar, both of which have led to mounting losses for the sector.
Sugar exports were prohibited in March 2023 in a move that has since been extended multiple times, the last time in October when the ban was extended until next April.
Hassan Al-Fendi, a member of the Chamber of Food Industries, said that rising production driven by an expansion in beet cultivation is narrowing the gap between production and consumption.
He said that the increase in imports of sugar was prompted by the fact that imported sugar is LE4,000 per ton cheaper than locally produced sugar.
Egypt’s sugar production rose by 34 per cent in the season ending in August, recording the highest production ever at 2.964 million tons, up from 2.215 million tons in 2024.
Sugar is produced from sugar cane from January to April and from beet from February to August.
The output of beet sugar jumped by more than 50 per cent to 2.36 million tons, accounting for 80 per cent of total production for the season. The increase in cultivated areas last season boosted the supply of beet to 18 million tons, 50 per cent higher than the previous season, according to Ministry of Agriculture figures.
Although the import ban on sugar has now been in effect for about a month, the market has not experienced any shortages in supply. Al-Fendi noted that sugar remains readily available, with factories purchasing it at around LE27,000 per ton.
The Ministry of Agriculture buys sugarcane from farmers at LE2,500 per ton and sugar beet at LE2,000 per ton.
Ahmed Zaki, Secretary of the Exporters Division at the Federation of Chambers of Commerce, said that the decision to ban sugar imports is meant to preserve local price stability. He added that in the event of a shortage, imports can be permitted and when there is a surplus they can be restricted.
The difference in price between imported and locally produced sugar is about $100 per ton.
Egypt has eight sugarcane processing factories, all operated by the government-owned Sugar and Integrated Industries Company under the Holding Company for Food Industries.
The Kom Ombo factory ranked first among cane sugar producers during the last season at 130,000 tons, followed by Qous at 118,000 tons and Armant at 90,000 tons.
These three factories alone accounted for 56 per cent of total cane sugar production, while the remaining five factories produced the rest.
Egypt has nine factories producing sugar from beet, five of which are government-owned and account for most of the output, with the remaining four in the private sector.
The Daqahliya Sugar Company ranked first among beet sugar producers this year with a total output of 403,000 tons, followed by the Delta Sugar Company with 365,000 tons.
The Canal Sugar Company led private-sector beet sugar producers with a total output of 300,000 tons.
In 2023 and 2024, Egypt suffered from shortages of sugar. Industry sources at the time attributed this to unorganised distribution channels, exchange-rate volatility before the currency flotation, and a decline in local production.
In the weeks leading up to the decision to ban sugar imports, prices dropped sharply, lowering retail prices for consumers but causing losses for manufacturers.
The price per ton fell to LE21,000 to LE22,000 from LE27,000 to LE28,000, while production costs continued to rise. This prompted calls for import restrictions to protect the competitiveness of local production.
Member of the Food Commodities Division at the Federation of Chambers of Commerce Hazem Al-Menoufi said that leaving the door open to imports could have forced some factories to halt operations, harmed the local industry, pressured farmers, and lowered supply prices for the next season, potentially discouraging sugar cultivation.
He added that the recent drop in global sugar prices was seasonal and unlikely to persist, with prices expected to rise in the near future. He noted that the government intervention is aimed at safeguarding Egypt’s sugar industry, which is on the verge of self-sufficiency.
* A version of this article appears in print in the 18 December, 2025 edition of Al-Ahram Weekly
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