(Ecofin Agency) - The Egyptian government cancelled the EGP3,000 ($168) export tax per ton of sugar it imposed April last year, the Minister of Trade and Industry said Aug 8.
The tax was to reduce sugar shipments as to ensure a sufficient local supply. A statement relayed by Reuters indicates that the tariff withdrawal will allow to ship the current sugar surplus. Egypt should produce 2.44 million tons of refined sugar in 2018/2019 for a consumption of 3.1 million tons, according to March forecasts from the US Department of Agriculture (USDA).
Key export destinations include Sudan and Kenya, which absorb about 50% of total shipments. Let’s note that the country has 14 sugar processing mills with a combined capacity of 18.5 million tons of sugar cane and sugar beet.