Youssra Sayed Othman Fadl, H1, Managerial Economics, MBA, AASTM

Sugar Crisis in Egypt, 2016

In October 2016, sugar prices in the local market surged to EGP 18-20/kg ($1-1.1) as compared
to EGP 5.50 ($0.30 cents) per kilogram previously. A price spike of that level was unprecedented. Due to
different levels of government influence and subsidization, multiple market prices currently exist. For
example, the MoSIT’s outlets sell refined sugar at EGP 8 ($0.45 cents) per kilogram to food subsidy
beneficiaries and EGP 10.75 ($0.60 cents) per kilogram for other consumers. In the free market, two
prices prevail: refined sugar offered by state-run processors at EGP 11.75 ($0.65) per kilogram and sugar
from private companies offered at EGP 12-14 ($0.66-0.77) per kilogram. In March 2017, the Minister of
Supply and Internal Trade decided to put measures in place to try to stabilize the sugar price. The
Ministry obliged sugar packing companies to stamp each sugar package with the subsidy prices sold at
its outlets.

Important info:

 Reduction of the sugarcane cropping area to less than 126 000 ha to be replaced by sugar beet.
 Egypt produces 1.3 million tons from sugar beet and 1 million tons from sugar cane
 Annual raw sugar import for refining is 1 million tons + 150,000 tons of white sugar
 In Africa, the highest increases in total consumption are projected in Egypt
 FAS Cairo forecasts total sugar domestic consumption in MY2018/19 to increase by 1.6 percent
or 50,000 MT to reach 3.1 MMT as a result of population increase. Egypt’s raw sugar imports in
MY2018/19 are forecast at 800,000 MT against 960,000 MT in MY2017/18.

Consumption:

 3.5 million tons of Egyptian consumption over one year.

 Per capita consumption of sugar has been growing fast since 2000 in Egypt and was recorded at
27 kg/capita and 34 kg/capita in 2015, due to population growth and income level increase.
 The maximum consumption would increase from 3297.90 thousand tons in 2016 to 4318.43
thousand tons in 2025. This increase may be due to an increase in population of Egypt and per
capita consumption.

Reasons:

1. The global rise in sugar prices and the decision by traders to halt imports are the reasons behind
the decision to increase the price of sugar،” an Egyptian official said on Tuesday.
2. Egyptian authorities directed the blame towards sugar factories and distributors ،accusing them
of hoarding and smuggling supplies and dealt with the issue by seizing some 9،000 tons of sugar
in recent raids on factories and warehouses.
Youssra Sayed Othman Fadl, H1, Managerial Economics, MBA, AASTM
‫‪Youssra Sayed Othman Fadl, H1, Managerial Economics, MBA, AASTM‬‬

‫لخص عدد من أعضاء مجلس النواب‪ ،‬أزمة السكر الحالية بعد وصول سعر الكيلو إلى ‪ 10‬جنيهات فى‬
‫بعض األماكن إلى ‪ 3‬أسباب رئيسية تتمثل فى احتكار عدد من التجار للمنتج المحلى بالكامل فى غياب الرقابة‬
‫وتحكمهم فى السوق‪ ،‬إلى جانب تراجع المساحات المرزوعة بمحصولى قصب السكر والبنجر بسبب عدم‬
‫الموافقة على زيادة سعر التوريد بواقع ‪ 100‬جنيه للطن لكل المحصولين‪ ،‬وأخيرا عدم اهتمام وزارة الزراعة‬
‫باستنباط سالالت جيدة لصالح عدد من األشخاص من األسباب القوية فى تراجع انتاجية الفدان على حد‬
‫قولهم‪.‬‬
‫وأضاف الشعينى‪ ،‬فى تصريحه لـ"اليوم السابع" انه من األساب الحقيقية فى أرتفاع أسعار السكر إلى‬
‫جانب احتكار عدد من التجار للسلعة عدم دعم الزراعة وخير دليل تراجع نسبة األراضى المزروعة بمحصول‬
‫قصب السكر فى محافظات الصعيد خاصة لصالح محاصيل أخرى بعد استمرار تهميش الدولة للفالح على‬
‫الرغم من ان رئيس الجمهورية فى جميع لقاءاته يكون حريص على الزراعة وكل ما يشغل الفالح ورفع‬
‫المعاناة عن كاهل هذه الشريحة من المجتمع المصرى‪.‬‬