Economic

Sugar crops prices drop sharply in Egyptian market due to coronavirus

An official source at the Egyptian Ministry of Agriculture expected that it would be difficult to raise the prices of supplying sugar crops this season from 720 pounds per ton of sugar cane and 500 pounds per ton of beets , noting that despite the current circumstances, the matter is still under study. He pointed out that thousands of acres were affected by the recent rains, which will be reflected in the amount of production supplied to companies.

And he predicted in the statements of low price of sugar on international exchanges, as a result of the deflationary movement that is hitting global markets, calling for limiting the import of sugar from foreign markets to protect the national industry.

The official revealed that the area planted with sugar beets decreased from 595 thousand feddans in 2018 to about 510 thousand feddans in the 2019 season, with a decrease of 80 thousand feddans (about 14%), due to the low supply prices.

Dumping in the Egyptian market

He added that “the cause of the crisis is the dumping in the Egyptian market with imported sugar, in light of the absence of protective fees to support the national product, as the price of the importer during the past months reached 6 pounds per kilogram, while the cost of the Egyptian product exceeds this price, which led to A state of stagnation in domestic production. “

Sugar crops prices drop sharply in Egyptian market due to coronavirus

High cost of domestic production

For its part, and due to the high cost of domestic production than its importing counterpart, sugar factories have informed the Ministry of Agriculture of not increasing the prices of beet crops in the new season, which began in the second half of February, at 500 pounds per ton, in addition to the earning premium and the sugar percentage.

Mustafa Faraj, Chairman of the Sugar Crops Association Board of Directors, called before the Agriculture Committee in the House of Representatives to raise the price of supplying a ton of sugar cane, which was fixed two years ago at 720 pounds per ton, despite the high cost of acre production to 30 thousand pounds, as well as the stability of the supply price Sugar beets at 500 pounds per ton, and the cost of producing an acre of 7,000 pounds.

Tags
Show More

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
Close
Close