The Madbouly government has turned to its strategic sugar reserves in a bid to put a lid on soaring prices, Asharq Business reports, citing a government source. The Supply Ministry will dump 240k tonnes into the market this month to fill the supply gap to reduce the volatility, which has continued despite a raft of measures put in place by the government to restore calm.

It has never been more expensive to have a sweet tooth: Sugar prices have soared to record highs in recent weeks and have jumped more than 50% in the past week alone. A kilo of the white stuff is now going for more than EGP 55.

Blame: The FX crunch and hoarding.

What does this do to our reserves? The official told the news outlet that before the withdrawal reserves were sufficient to last 5.5 months, but did not disclose a specific quantity. Supply Minister Ali El Moselhy said at the end of October that the country had 2 mn tons in reserve. Current demand is around 245k tonnes a month, the source said.

We’re getting a top-up: An 86k-tonne shipment arrived on Friday, and another 100k tonnes are set to be delivered in January, according to the source.

Time for Plan D: The ministry has introduced a number of measures to calm prices in recent days: exports are banned, suppliers have been barred from selling to traders and sugar has been restored to ration cards, while an attempt was made last month to persuade businesses to reduce prices. Earlier this month, El Moselhy floated the possibility of introducing price controls if the market remains volatile.

MEANWHILE- The government has extended its ban on onion exports through 30 March 2024 in a bid to maintain supply and tamp down prices, according to a cabinet readout. The ban, imposed in September to curb soaring local prices that saw onions trading hands at up to EGP 35 per kilo, was set to expire at the month’s end.

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