The peasants lost to second-division side Canal Mooring & Lights 4-3 on penalties after a 2-2 draw to suffer a first-round exit from Egypt's oldest competition.
They could not retain their top flight status after a 1-1 draw at Harras Hodoud last Monday condemned them to relegation.
Canal Mooring & Lights, the second lower division side to book a last-16 berth after Ragaa, will face Petrojet in the second round.
Petrojet, who finished fourth in the Egyptian Premier League, crushed Qanah 3-0.
Military Production could have become the second Premier League team to be eliminated but struck in stoppage time to spare their blushes against Nassr.
Nassr took a surprise lead two minutes before the break but striker Hassan Mousa brought Production level on 70 minutes.
A late goal from Hassan Awad prevented Production from following in the footsteps of Police Union, who were knocked out of the cup on Friday after a defeat at the hands of Ragaa.
Asyut Petroleum needed four goals from Wael Farrag to claim a 5-3 victory over Alexandria-based club Koroum in a thrilling game.
Gouna, who survived relegation on the final day of the season, went through after defeating Dakhlia 4-3 on penalties.
The normal and extra time ended in a 2-2 draw as Gouna forward Gamal Hamza scored twice.
The former Zamalek man will join Egyptian champions Ahli in the close season.
نرشح لكم
ليسا أشقاء.. من هما محمد علاء وطارق علاء ثنائي منتخب مصر الجديد
منتخب مصر يعلن غياب محمد صلاح عن مباراتي السعودية وإسبانيا للإصابة
توروب: أتحمل مسؤولية خروج الأهلي من إفريقيا.. ولن أتحدث عن الشرط الجزائي
توجاي: انتصارنا على الأهلي ذهابا وإيابا كان لرد الاعتبار
الجلاصي: أصررت على لعب مباراة الأهلي رغم الإصابة
حمزة علاء: لم نوفق في أبطال إفريقيا.. وسنفعل كل شيء للتتويج بالدوري
الدوري المصري – موعد مباراة إنبي ضد بيراميدز












سيناريو مكرر للمرة الثانية.. يوفنتوس يهدر فوزا قاتلا بالتعادل مع ساسولو