The Clap
The Ministry of Trade allowed free zone projects to use local sugar as a manufacturing material, and lifted their sugar export restrictions.
What
Global sugar prices have increased strongly, and there is a global sugar deficit. This move limits the exposure of free zone companies to the foreign currency pressure of importing expensive sugar.
So What
This comes on the heels of the government agreeing to import 165,000 tons of sugar and allowing companies to import another 150,000 tons. It aims to increase the local supply of sugar to drive prices down and increase strategic reserves.
Now What
The sugarcane and sugar beet harvest season starts in January 2024. The harvest output directly impacts the year’s sugar supply and prices.
