CAIRO: The recent increase in the price of fuel will negatively affect the price of products including sugar, Head of Holding Company for Food Industries Ayman Saleh told al-Shorouq on Wednesday.
Locally manufactured sugar from the Sugar and Integrated Industries Company is sold for 5.25 EGP ($ 0.73) per kilogram while imported sugar is sold for 4.5 EGP, Saleh said.
The new subsidy system imposed by the government will cause local sugar companies to close, since it will cause a price increase in the domestic product.
The system could also negatively affect farmers who plant sugar cane because local factories will start refining raw imported sugar instead of buying sugar cane form farmers with a much higher price than the international prices, Advisor to the Holding Company for Food Industries Hassan Kamel told Al-Masry al-Youm on Monday.
The Sugar Company has suffered from an excess supply of sugar beet stock for three years due to a flood in the market cheap imported sugar. Heads of local sugar companies have demanded the government to import the amount of sugar that fills the gap of local production (800,00 tons,) the Head of Delta Company for Sugar Abdel Hamid Salama told Shorouq Wednesday.