Sugar traders are no longer taking their ahwa ziyada: The Madbouly government will meet with sugar packing companies and traders later today to negotiate new terms and requirements for trading of the commodity, an official at the Supply Ministry told us yesterday. The official was speaking after the government imposed a temporary ban on sales of sugar to traders by both private and state-owned companies.

Wait, what ban? The temporary edict was handed down as officials looked to tamp down soaring sugar prices, Asharq Business reported yesterday, saying a source with knowledge of the decision had told it that companies had been told “not to sell to traders until prices stabilized.”

The Supply Ministry source tells us the government believes the ban will be temporary “until new terms are set” and that prices should come down once an agreement is reached.

The rationale: Cracking down on hoarding. The move is designed to prevent traders from hoarding supplies ahead of the anticipated currency devaluation and driving prices upwards, the source said.

Sugar prices are soaring: ​The price of non-subsidized sugar has surged in the recent months on the back of a series of currency devaluations, which has triggered record inflation across the economy. Sugar is trading at as much as EGP 40 a kilo, double the price subsidized by the government.

It’s not just local factors driving prices higher: Sugar prices are spiking in sugar importers across North and Sub-Saharan Africa due to weak harvests in key producers, according to Bloomberg.

There’s a carveout for some companies: The government is allowing sales to companies that depend on sugar in their production of goods, according to three company leaders who spoke to Asharq on the matter.

Export ban extended: The Trade Ministry last week extended its ban on sugar exports until the end of the year in a bid to curb inflation. Exports have been banned since March.

The gov’t has also been stocking up its sugar reserves: The General Authority for Supply Commodities (GASC) announced the arrival of 100k tons of raw sugar from Brazil on Monday, with another 50k tons expected to arrive within the month. Meanwhile, the Supply Ministry said on Wednesday that it’s working towards importing another 200k tons of raw sugar in the coming months to maintain at least six months worth of supply in reserve.

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