Egyptian Authorities Confiscate 2000 Tons of Sugar Stocks at Edita Food Industries

Following the sugar crisis that has hit Egypt this past month, the state has been under peer pressure to increase imports despite the dollar crisis. According to Reuters, Egyptian authorities seized 2000 tons of sugar stocks at Edita Food Industries this Saturday, which is one of the country’s largest food producers.

Chairman Hani Berzi said that one of the four factories in Beni Suef has been raided and the company might be forced to suspend its operations. Edita has been unable to show original invoices for the quantities found, yet denied hoarding sugar.

The government has blamed the crisis on local factories and profiteering traders who have been stashing sugar in an attempt to increase prices. “The standalone implications (for Edita) are minimal given that contribution to sales from the candy business are low,” Allen Sandeep, head of research at Naeem Brokerage said. “However, the same might not go down well from an investor sentiment perspective.”

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