Egypt’s Edita shuts sweet factory after sugar seized

Edita Food Industries, Egypt’s maker of Twinkies, said on Monday its sweet factory in Beni Suef had been shut for three days after authorities seized its sugar, raising questions among investors over the way Egypt is handling a supply crunch.

At supermarkets nationwide sugar has all but vanished, prompting media talk of a crisis and pushing the state to rapidly increase imports despite an acute dollar shortage and soaring global prices of the sweetener.

The government has accused factories and traders of hoarding stocks to push up prices, an allegation they deny.

One sugar supplier said raids on factories began last week and mark the latest escalation in confiscations which have hit thousands of wholesalers and packers in recent weeks.

A supply ministry official told Reuters late on Sunday that 2,000 tonnes of sugar were confiscated after Edita was unable to show original invoices for sugar stocks held at Beni Suef.

Edita, one of Egypt’s largest food producers, told Reuters it had produced all required documents and denied hoarding. (RTRS)