No, Mr. Minister, the private sector was not responsible for the sugar crisis, according to the Egyptian Competition Authority: The ECA has published a report (pdf) on recent allegations of anti-competitive practices in the sugar market. Technically speaking, there is no single company or grouping that controls supply and demand or can stop competitors from entering the sugar market. The report concludes that there is more than one product available and the option to import is open as domestic production only covers 77% of demand.

While the ECA found the Sugar and Integrated Industries Company (SIIC) controls more than 25% of the market, it could not claim SIIC controlled the market as prices and distribution were determined to a great degree by the government. In the absence of evidence of monopolistic practices, the rising price of sugar can be attributed to a rise in the cost of imports driven by the FX crisis, high parallel-market FX rates, CBE restrictions on banking facilities for importers, and a rise of 42-50% in global sugar prices. As the government purchases domestically produced sugar and distributes it to supply outlets and complexes through a long chain, “opportunists” have stored sugar to sell at prices higher than official rates.

In other industry news, the Damietta Port has begun transporting sugar using railroads and river barges, Ahram Gate reported.