EU Suffers after Egypt's Decision to Ban Sugar Imports

According to Bloomberg, Europe's export market suffered more after Egypt’s decision to restrict sugar imports.

The European Union which witnessed its white-sugar exports retreat last season now faces the prospect of losing a major export market as Egypt's local production started to bloom.

Since the North African nation was the EU’s second-biggest export market two years ago.

Ben Seed, an analyst at supply-chain services company said: "After the Egyptian government decided to restrict imports, the EU has to look for another destination for its sugar exports."

That would be another blast for the EU, the world’s third-largest sugar producer, which suffered production fall recently due to low prices, drought and a crop virus that damaged harvests.

Ahmed Abo Zaid, an official at Egypt’s supply ministry said: "The government is also increasing investment in state-owned sugar to boost production capacity and help the domestic industry become independent in the future."

Zaid also added that the nation has also extended its sugar import ban through November at least to protect the local sector after the coronavirus pandemic dropped sugar prices down earlier this year.