Egypt Imposes Extra Import Duty on White Sugar

Cairo, Jan 23 - The Egyptian government has imposed a duty of 500 Egyptian pounds ($90) a tonne on imports of white sugar to protect the local sugar industry, Trade and Industry Minister Rachid Mohamed Rachid said on Thursday.

"We have seen in the last few weeks very clear signs of dumping -- a huge surge in imports has been created, so we had to take protective measures in line with the WTO regulations to protect our industry," Rachid told reporters.

The new import duty is on top of an existing 10 percent duty on white sugar, he added.

He declined to say where the surge in imports was coming from. "It has been coming from different places... The review of the numbers has led us to believe there is a need for a protection mechanism for a period of time," he added.



Egypt consumes about 2.2 million tonnes of sugar a year, including about 1.4 million tonnes produced domestically. About 60 percent of its imports come from Brazil.

The price of processed white sugar in the Egyptian market is currently around $425-$440 a tonne on a cost, insurance and freight (CIF) basis, a trader said.

One trader said the ministry's decision would protect the domestic industry from foreign competition but could also discourage local firms from improving their efficiency.

"There is a large stock (of processed sugar) in Egypt," said the trader, who asked not to be named. "This decision will allow local companies to impose the prices they want."

Rachid also said that the Egyptian government would not impose an export duty on rice when it lifts the current ban on rice exports in April. ($1 = 5.5565 Egyptian pounds)
source:reuters