Egypt seizes sugar in raids amid shortage

The Egyptian authorities have seized 9,000 tonnes of sugar in raids on factories and warehouses, amid a nationwide shortage of the commodity.

Prime Minister Sherif Ismail said the raids had a ‘positive impact’ on supplies, meaning there would now be enough to cover the next three months.

The sugar will be resold at subsidised prices through state-run outlets.

Sugar has all but disappeared from supermarket shelves in recent weeks, prompting widespread anger.

Reviving economy
This crisis comes as President Abdul Fattah al-Sisi’s government makes unpopular cuts to a costly subsidies programme and attempts to finalise a $12bn (£10bn) International Monetary Fund loan it sees as key to reviving the struggling economy.

A dearth of foreign currency and a sudden suspension of oil aid from Saudi Arabia have also led to the value of the Egyptian pound plummeting on the black market.

One of Egypt’s largest confectionary makers, Edita Food Industries said that its factory in Beni Suef province had been shut for three days after officials seized about 2,000 tonnes of sugar.

The company stated that it had not been overstocking sugar and that the sugar had been obtained legally from the private sector and not the black market.

In an interview, Mr Ismail said: “There are some negative points that we are dealing with but they were a limited number of cases.”

“We can’t leave the market without supervision…Monitoring is necessary,” he added.

However, the Federation of Egyptian Chambers of Commerce warned that the seizure of commodities from the private sector would result in more shortages, as companies would be forced to exit the market instead of expanding and investing.

“If the government has a problem, they should come and negotiate, but this way of seizing stocks and treating us as smugglers is shameful,” Edita Chairman Hani Berzi said.

Egypt imports almost a third of the 3million tonnes of sugar it consumes annually.

The sugar shortage had led to prices almost doubling to 10 Egyptian pounds ($1.13) per kilogram in the past few weeks, according to supermarkets surveyed by Bloomberg.

Mercy Chukwudiebere