A baker makes traditional sweets in Cairo. Reuters
A baker makes traditional sweets in Cairo. Reuters
A baker makes traditional sweets in Cairo. Reuters
A baker makes traditional sweets in Cairo. Reuters

Egyptians struggle to find sugar as prices hit record highs


Kamal Tabikha
  • English
  • Arabic

Long queues of Egyptians on the hunt for sugar have become a common sight in Cairo neighbourhoods over the past week in the middle of a severe shortage in supply that has driven prices to record highs.

Sugar is the latest product to soar in price during Egypt's worst economic crisis in living memory, with an increasing number of the country's 105 million people unable to afford basic goods because of rampant inflation and stagnating wages.

Egypt's Supply Minister Ali El Moselhy addressed the sugar crisis in an interview on Wednesday and asked Egyptians to be patient.

“I cannot deny that citizens are not able to find sugar in a lot of stores,” Mr Moselhy said.

“All I ask is for you to be patient as we are planning to increase supplies this Saturday. And I urge you not to pay more than 27 pounds ($0.87) per kilo for sugar,” he told the pro-government ONTV network.

The minister’s interview with host Khaled Abour Bakr lasted nearly an hour and a half and included a portion during which he answered questions sent to the programme by citizens.

Many bemoaned the inability to find sugar in shops across Cairo, where the basic commodity has become a rare find.

“I have been to six supermarkets today and there is no sugar to be found. I finally found a place about five kilometres from my home that had a small stock. They were selling it for 60 Egyptian pounds,” said Manal Hossam, a housewife and resident of Cairo’s lower-income Alf Maskan district.

Mr Moselhy said the main reason for the shortage of sugar in shops was a severe drop in supply caused by decreased private sector supply, an increase in exports, and other logistical issues.

Egypt’s annual consumption of sugar is about 3.2 million tonnes, of which 2.8 million are produced locally, according to Mr Moselhy. Of the total, 700,000 tonnes are produced by the private sector, according to the minister.

But he emphasised during the interview that Egypt is not suffering an overall shortage of sugar, but instead lacks the logistics to supply its wares to citizens in light of a drop in the contribution from the private sector.

Egypt's Supply Minister Ali El Moselhy. Reuters
Egypt's Supply Minister Ali El Moselhy. Reuters

Sugar is still available at the Supply Ministry’s outlets where ration card holders (who make up about 60 per cent of Egypt’s population) can buy it for 13 Egyptian pounds ($0.42) a kilo.

Each ration card can hold up to four family members, and each one is given a monthly ration of 1kg of sugar.

Mr Moselhy rejected calls to increase the number of family members included on ration cards on the grounds that that would increase expenses for the country’s middle class.

“The government offers subsidised goods for over 64 million people, that’s around 60 per cent of the total population. If I increase the sugar allotted on every ration card, then what would the remaining 40 per cent consume?” he said.

He also blamed limited packaging capacity and “unclear supply chains” for the shortages.

Mr Moselhy promised that by December 15, the ministry will have pumped enough supplies to bring down prices, which he expects to stabilise at about 25 pounds a kilogram in early 2024.

The ministry has prioritised supplying the industrial sector, including sugar refineries and small food businesses, over shops, so they can continue production.

“There are a lot of small businesses who can’t afford to import, either because they can’t secure the necessary dollars to import raw materials and others because their operations are not big enough,” the minister said, “So it was more important for the country’s economy to supply them with raw materials first and then the consumer.”

A dollar crunch has crippled many Egyptian industries since it began in March 2022, many of whom rely on imported components to keep operating.

The increased demand for dollars, which has invigorated local currency black markets, has also made sugar producers prioritise exports over selling locally.

Although Egypt has devalued its currency three times since 2022, it is still widely considered overvalued and trades on the black market for 55 pounds per US dollar.

A stallholder at a market in Cairo, Egypt. Reuters
A stallholder at a market in Cairo, Egypt. Reuters

Producers get round ban on exports

Global sugar prices rose about three months ago, Mr Moselhy said.

This led many Egyptian private sector producers to export their wares to increase profits.

As a result, the country’s Ministry of Local Trade and Industry in March imposed a three-month ban on sugar exports.

The ban has been extended twice since then, in June and again in September.

However, the ban allowed for exports of sugar that “exceeded market needs”, according to a ministry statement in March, which meant that some producers were allowed to continue exporting at the ministry’s discretion.

“The ban only barred smaller sugar producers from exporting their wares and many then joined the government’s price initiative," a sugar wholesaler told The National.

However, large-scale exporters continued to export large amounts of sugar to make profits. "These are the country’s big commodity traders who have agreements of one nature or another with the government,” they said.

Egyptians rushed to buy sugar from a truck in Cairo during a previous shortage in 2016. AFP
Egyptians rushed to buy sugar from a truck in Cairo during a previous shortage in 2016. AFP

Price control initiatives

The government launched a price control initiative in October when it promised to bring down the prices of essential food items “by a noticeable amount”, according to a cabinet statement at the time.

The initiative was widely touted as a promotional campaign for the presidential campaign of incumbent Abdel Fattah El Sisi, who is widely expected to win the upcoming election. Ballot boxes will close on December 15.

Under the initiative, local sugar producers pledged to sell their wares for no more than 27 pounds per kiloram and a ministry watchdog was established to ensure they did not hike prices, Mr Moselhy said in October.

While the initiative worked at first, according to the wholesaler, producers started to pull out of their deal with the supply ministry because increased production costs meant they would be operating at a loss if they sold sugar at 27 pounds a kilogram.

Currently, sugar being sold under the initiative has not only dwindled, but is selling at 32 pounds per kilo, five pounds higher than the ministry-mandated price.

A sugar beet plant, infected by cracking due to the salinity and lack of soil permeability, in Sidi Salem, Egypt. Reuters
A sugar beet plant, infected by cracking due to the salinity and lack of soil permeability, in Sidi Salem, Egypt. Reuters

Sugar beets left to rot

Industrial action may have also affected sugar prices.

A farmer who sent in a question to the minister during his interview said that hundreds of tonnes of sugar beet had been left to rot in the south of the country.

Mr Moselhy said the ruined beets were a result of logistical and timing issues.

However, a number of local outlets reported in August that large-scale strikes at two of the country’s largest sugar factories, both in the impoverished Upper Egypt region, halted production.

The strikes were reportedly held over low wages and skyrocketing prices nationwide.

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Northern Warriors 92-1 (10 ovs)

Russell 37 no, Billings 35 no

Team Abu Dhabi 93-4 (8.3 ovs)

Wright 48, Moeen 30, Green 2-22

Team Abu Dhabi win by six wickets

Ruwais timeline

1971 Abu Dhabi National Oil Company established

1980 Ruwais Housing Complex built, located 10 kilometres away from industrial plants

1982 120,000 bpd capacity Ruwais refinery complex officially inaugurated by the founder of the UAE Sheikh Zayed

1984 Second phase of Ruwais Housing Complex built. Today the 7,000-unit complex houses some 24,000 people.  

1985 The refinery is expanded with the commissioning of a 27,000 b/d hydro cracker complex

2009 Plans announced to build $1.2 billion fertilizer plant in Ruwais, producing urea

2010 Adnoc awards $10bn contracts for expansion of Ruwais refinery, to double capacity from 415,000 bpd

2014 Ruwais 261-outlet shopping mall opens

2014 Production starts at newly expanded Ruwais refinery, providing jet fuel and diesel and allowing the UAE to be self-sufficient for petrol supplies

2014 Etihad Rail begins transportation of sulphur from Shah and Habshan to Ruwais for export

2017 Aldar Academies to operate Adnoc’s schools including in Ruwais from September. Eight schools operate in total within the housing complex.

2018 Adnoc announces plans to invest $3.1 billion on upgrading its Ruwais refinery 

2018 NMC Healthcare selected to manage operations of Ruwais Hospital

2018 Adnoc announces new downstream strategy at event in Abu Dhabi on May 13

Source: The National

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE. 

Read part four: an affection for classic cars lives on

Read part three: the age of the electric vehicle begins

Read part two: how climate change drove the race for an alternative 

If you go

The flights
Etihad (etihad.com) flies from Abu Dhabi to Luang Prabang via Bangkok, with a return flight from Chiang Rai via Bangkok for about Dh3,000, including taxes. Emirates and Thai Airways cover the same route, also via Bangkok in both directions, from about Dh2,700.
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The Gypsy by Mekong Kingdoms has two cruising options: a three-night, four-day trip upstream cruise or a two-night, three-day downstream journey, from US$5,940 (Dh21,814), including meals, selected drinks, excursions and transfers.
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Accommodation is available in Luang Prabang at the Avani, from $290 (Dh1,065) per night, and at Anantara Golden Triangle Elephant Camp and Resort from $1,080 (Dh3,967) per night, including meals, an activity and transfers.

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Valladolid 1 (Kiko 15')

Who is Tim-Berners Lee?

Sir Tim Berners-Lee was born in London in a household of mathematicians and computer scientists. Both his mother, Mary Lee, and father, Conway, were early computer scientists who worked on the Ferranti 1 - the world's first commercially-available, general purpose digital computer. Sir Tim studied Physics at the University of Oxford and held a series of roles developing code and building software before moving to Switzerland to work for Cern, the European Particle Physics laboratory. He developed the worldwide web code as a side project in 1989 as a global information-sharing system. After releasing the first web code in 1991, Cern made it open and free for all to use. Sir Tim now campaigns for initiatives to make sure the web remains open and accessible to all.

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Academics: Phd in strategic management in University of Wales

Number one caps: His best-seller caps are in shades of grey, blue, black and yellow

Reading: Is immersed in books on colours to understand more about the usage of different shades

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4,872 matches 

1,942 teams

116 pitches

76 nations

26 UAE teams

15 Lebanese teams

2 Kuwaiti teams

England Test squad

Ben Stokes (captain), Joe Root, James Anderson, Jonny Bairstow, Stuart Broad, Harry Brook, Zak Crawley, Ben Foakes, Jack Leach, Alex Lees, Craig Overton, Ollie Pope, Matthew Potts

 
Tearful appearance

Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday. 

Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow. 

She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.

A spokesman said her upset demeanour was due to a personal matter.

Suggested picnic spots

Abu Dhabi
Umm Al Emarat Park
Yas Gateway Park
Delma Park
Al Bateen beach
Saadiyaat beach
The Corniche
Zayed Sports City
 
Dubai
Kite Beach
Zabeel Park
Al Nahda Pond Park
Mushrif Park
Safa Park
Al Mamzar Beach Park
Al Qudrah Lakes 

Final results:

Open men
Australia 94 (4) beat New Zealand 48 (0)

Plate men
England 85 (3) beat India 81 (1)

Open women
Australia 121 (4) beat South Africa 52 (0)

Under 22 men
Australia 68 (2) beat New Zealand 66 (2)

Under 22 women
Australia 92 (3) beat New Zealand 54 (1)

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Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
MATCH INFO

Day 2 at Mount Maunganui

England 353

Stokes 91, Denly 74, Southee 4-88

New Zealand 144-4

Williamson 51, S Curran 2-28

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Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem

Director: Joseph Kosinski

Rating: 4/5

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Updated: December 01, 2023, 7:09 AM`