The Egyptian Chambers of Commerce has stated that the recent global drop in sugar prices is expected to positively impact the local production of sugar. According to Hazem El-Menoufy, a member of the Food Products Chamber at the Egyptian Federation of Chambers of Commerce, the local product was incurring losses during the past period. He cited the influx of sugar into the market at prices lower than the production cost as one of the influencing factors.
El-Menoufy explained that the decrease in global sugar prices will reflect on local production, noting that the entry of quantities at lower prices than the cost affected local production. However, he added that the market has now reached a point of equilibrium that allows for a fair price for both producers and consumers. This balance is crucial to ensure the continuation of the production chain without any losses.
The goal, El-Menoufy emphasized, is to maintain the continuity of all parties in the production chain, ensuring that no party incurs losses. He highlighted the importance of achieving a balance between producers and consumers to reach a fair price for the commodity. The intervention of the Ministry of Supply and Internal Trade through its initiative, which will continue for six months until March 2025, is expected to contribute to achieving this balance.
The Ministry of Supply's initiative aims to regulate the market and promote competition. El-Menoufy noted that this government intervention can limit excessive price increases, allowing for price movements if they occur, but preventing them from reaching unreasonable levels. This step is considered proactive and will help prepare the market for the coming period.
El-Menoufy also pointed out that the Ministry's intervention represents a proactive step for the coming period, as it offers alternatives at reasonable prices for consumers, thereby increasing competition in the market. The availability of these alternatives enables citizens to obtain goods at a fair price while maintaining competition among products in the market.
Regarding price expectations for the coming period, El-Menoufy predicted that most food products will be available during the next six months at reasonable prices, with no significant price movements expected. He expressed optimism that the market will stabilize, benefiting both producers and consumers.
The Egyptian Chambers of Commerce continues to monitor market trends and work towards achieving a stable and balanced market that serves the interests of all parties involved. With the global sugar price drop and government interventions, the local market is expected to experience a positive shift, ultimately benefiting consumers and producers alike.
Key points
- The global drop in sugar prices is expected to positively impact Egypt's local sugar production.
- The Egyptian Ministry of Supply's initiative aims to regulate the market and promote competition.
- The market is expected to stabilize with reasonable prices for food products during the next six months.
