(Ecofin Agency) - Egyptian authorities seized sugar stocks of Edita Food Industries, one of the country’s leading agro-food companies.

The executive said it is confiscated about 2,000 tons of the commodity because the firm failed to provide invoices to prove their origin. Edita however denied the government’s claim and threatens to stop its activities in the country. “If it’s (the confiscation) going to continue, the rest of the company will stop,” Edita Foods Chairman Hani Berzi said

The seizure comes amid a shortage of sugar in supermarkets which pushed the nation to rapidly increase the volumes of the commodity that it imports. While the State blames the importers for the situation saying they store the sugar to influence prices, experts believe shortage in dollars to be cause.

The head of the research department at Naeem Brokerage, Allan Sandeep, said seizing the stocks would have little impact on Edita Foods’ activity since earnings from its sweets segment are minimal. Regardless, the government’s decision sends a very bad message to foreign investors.

Edita Foods has in Egypt four plants including Beni Suef’s which makes sweets and whose stocks were seized.

Aaron Akinocho