Egypt Watch

Crisis hit the sugar industry in Egypt

With the sugar cane harvest approaching, the annual crisis between
farmers and the Egyptian government to determine the price of the crop
has been renewed.
Officials set a price for the supply of the crop that is not commensurate
with production costs, in light of the high costs of its cultivation.
Sugar companies in Upper Egypt have opened their doors to receive the
new crop of sugar cane at a price of EGP 720 per ton, which is the same
price for the third year in a row, which represents a loss from the
farmers ’point of view, at a rate of more than EGP 2,000 pounds per
Companies refuse farmers’ requests because they are unable to raise the
price of the crop, for fear of increasing its losses, as the production cost
per ton is EGP 7,150 pounds, while its market price is about EGP 6,750,
as a result of competition from imported sugar.
In addition to this there are already large quantities stored from last
The government supports the sugar companies with the high cost of
production but no one supports the farmer, says Mahmoud Badran,
member of the General Assembly of sugar cane producers.
Badran expected that the cultivated areas will decline in the coming
years if prices do not improve, indicating that some farmers have started
to grow other crops.
Egypt consumes about 3.3 million tons annually, of which 2.5 million
tons is produced, and it imports about 900,000 tons.