Egypt to issue draft law regulating commodity exchange to stabilise markets

Egypt is accelerating plans to activate its commodity exchange in an effort to stabilise domestic prices and strengthen food security, as ministers coordinate policies to regulate trading in key goods including sugar, cotton, and steel billet.

Investment Minister Mohamed Farid held discussions on Tuesday with Supply Minister Sherif Farouk, Agriculture Minister Alaa Farouk, and officials from the Future of Egypt Authority on speeding up the rollout of the platform, according to a government statement.

The planned exchange is intended to serve as a centralised mechanism for trading essential commodities, improving transparency and market governance while supporting price stability in local markets.

Farid said the government is working to digitise and organise commodity trading, adding that initial implementation will focus on sugar, cotton and steel billet. He said the system would enhance data-driven decision-making and improve the state’s ability to regulate supply and demand dynamics.

Supply Minister Sherif Farouk said the exchange would strengthen management of strategic reserves of staples including wheat, rice, oil and meat, helping ensure more stable availability in domestic markets.

Agriculture Minister Alaa Farouk said the initiative is part of broader efforts to build an integrated system linking producers and consumers more efficiently, with the aim of improving distribution and market fairness.

Bahaa El-Ghannam, head of the Future of Egypt Authority, said the plan comes amid ongoing global supply chain disruptions, noting that Egypt’s commodity trade exceeds $50 billion annually.

He added that draft legislation is being prepared to regulate the exchange, aimed at curbing monopolistic practices, improving foreign currency flows and expanding access for smaller producers.

Attribution: Amwal Al Ghad English

Subediting: Y.Yasser