Egypt resumes sugar exports through 2026 as domestic producers face surplus
The decision follows prolonged export restrictions as local sugar factories struggle with rising inventories, cheaper imports and high domestic production costs.
EGYPT – Egypt has resumed sugar exports through the end of 2026, allowing shipments of all types of sugar once domestic requirements are met, as local producers face rising stocks and difficulties selling their output.
The Ministry of Investment and Foreign Trade has permitted sugar exports nearly three years after Egypt first restricted overseas shipments in early 2023. The export restrictions had been renewed every three months since their introduction.
The decision comes as domestic producers report pressure from high inventories and cheaper imported sugar. Mustafa Abdel-Gawad, head of the Sugar Crops Council, said imported sugar costs considerably less than locally produced sugar, placing pressure on domestic factories.
International sugar prices have at times translated into an import cost of about LE18 per kilogram in Egypt, rising to around LE19 after refining. Imported sugar can then be sold domestically for between LE22 and just below LE30 per kilogram, allowing traders to generate significant margins. Domestic production costs about LE25 per kilogram, Abdel-Gawad said.
Most imported sugar is cane sugar sourced from countries including Brazil, India and Thailand, where lower fertiliser, land and labour costs allow producers to offer sugar at prices below those faced by Egyptian manufacturers.
Egypt produces about three million tonnes of sugar annually, covering approximately 85% to 88% of domestic demand, which is estimated at 3.4 million to 3.5 million tonnes.
Sugar beet accounts for around 77% of domestic production, equivalent to 2.1 million to 2.3 million tonnes, while sugarcane contributes about 23%, or 700,000 to 750,000 tonnes. The annual production shortfall of approximately 400,000 to 600,000 tonnes is normally covered through imports.
Producers say imports remain necessary, but large shipments can create difficulties when domestic factories are still holding unsold stocks.
Egypt has about 16 sugar factories. Eight are state-owned and mainly located in Upper Egypt, while the other eight, comprising public and private facilities, primarily process sugar beet and operate across the Delta, Daqahliya and Canal regions.
Abdel-Gawad called for sugar imports to be more closely linked to domestic demand and available stocks instead of allowing companies to import large quantities at their discretion.
Hussein Abu Saddam, head of the Farmers Syndicate, said high domestic production costs were also putting pressure on sugar factories. He said reducing payments to farmers would not provide a solution because current prices already offer only a reasonable return.
Farmers receive LE2,500 (US$49.04) per tonne for sugarcane and LE2,000 (US$39.23) per tonne for sugar beet.
Abu Saddam warned that continued financial pressure could make it difficult for sugar factories to finance purchases of next year’s crops.
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