Egypt Bans Import of Sugar for Three Months

The Minister of Trade and Industry Niveen Gamea issued a decision on Thursday banning the import of white sugar for a period of 3 months.

The decision, however, excluded import requirements for the pharmaceutical industries, provided that  an approval is issued for the competent authority at the Ministry of Health.

The Ministry of Trade and Industry stated today that the decision stipulated not to allow the import of monosaccharide for a period of 3 months, except upon the approval of the required quantity that is approved by the Ministers of Trade and Supply.

The Ministry clarified that the decision comes into force from the date of its issuance in the official gazette, and it be reviewed periodically according to the latest developments.

Gamea said that the decision was issued after coordination with the Minister of Supply Ali al-Moselhi, and it is aimed at protecting the national industry from fluctuations in world sugar prices caused by low oil prices, which led to a drop in sugar prices by 30%, noting that these fluctuations allow the import of sugar at prices that are less than the cost of its production in Egypt, which represents great threat to the local industry.

Drop in Global Sugar Prices

She added that the decision comes in light of the negative repercussions of the spread of the novel coronavirus, which caused great damage to the national industry, as the decision provides an opportunity for the soluble carbohydrate industry to recover from the damage it has suffered as a result of the drop in international prices.

On his part, Al-Moselhi, pointed out that the past period witnessed a significant increase in sugar imports and stockpiling with local companies, as the volume of consumption in Egypt reaches about 3-3.2 million tons annually, including 2.4 million tons of local production, pointing out that new projects that will enter the production stage soon will contribute to achieving self-sufficiency.

Out of the total world production of table sugar, Brazil produces 41%, and India 8%. While Russia top’s sugar beet production with 19% of the world total.

It is worth mentioning that alcohol is made by fermenting sugar with a catalyst, which is usually yeast. After fermentation, the soluble carbohydrate turns into carbon dioxide and ethyl alcohol.