ABU DHABI: Egypt's Ministry of Supply will buy 250,000 tonnes of sugar from local refiners to increase strategic reserves, it said on Wednesday.
The sugar will be bought at 4,050 Egyptian pounds ($456.09) a tonne, the ministry said in a statement.
The decision followed a meeting between Minister of Supply Khaled Hanafi and seven sugar companies, including private suppliers.
It said current reserves were enough to last for "months", but did not specify quantities.
The purchase also aims to provide liquidity to local plants, the statement said.
A higher committee for sugar trade will also be formed and will meet monthly to discuss problems facing the industry in Egypt and ensure the availability of sugar in the domestic market.
Egypt consumes around 3.2 million tonnes of sugar annually but produces just over 2 million tonnes.
Tens of millions of Egyptians rely on state subsidies provided as credits on smartcards they redeem against household staples, including sugar, each month.
In recent months, shortages have been reported in several commodities partly because foreign exchange problems made it harder for state importers to secure regular supplies.
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