Home | News    Tuesday 20 November 2012

Sudan government allows sugar prices to go up further as labor union warns on cutting subsidies

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November 19, 2012 (KHARTOUM) – The Sudanese finance ministry on Monday quietly issued a decision hiking the price of sugar as part of its ongoing effort to cut subsidies on basic commodities to stop the bleeding in the country’s budget.

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FILE - A man selling eggs waits for customers at the market in Khartoum, Sudan May 12, 2011 (REUTERS/Mohamed Nureldin Abdallah)

Decree number (83) signed by the finance ministry undersecretary Abdel-Rahman Dirar itemized several increases in fees and taxes associated with 50 kilogram (110 pounds) sugar bags bought by wholesale merchants.

This would be the second time this year that the government increased the price of sugar through partially removing the subsidies. This has led the price of a 50 kg sugar bag to rise from 156.5 Sudanese pounds (SDG) to 225 SDG last summer. Following today’s decision it is estimated that this figure would go higher by at least 30 SDG.

The country is one of the biggest African sugar producers but needs to import at least 400,000 tonnes annually.

Last July the government inaugurated a $1 billion sugar plant plans which aims to reach an annual output of 450,000 tonnes of white sugar within the next three years.

Sudan has gradually started eliminating commodity subsidies which the government asserts that it costs billions of dollars to maintain. This has posed an enormous drain on the budget which is suffering from the impact of South Sudan breaking away last year and taking with it around three quarters of the oil reserves.

A recent report by the International Monetary Fund (IMF) showed that oil now accounts for 3%-5% of Sudan’s gross domestic product, down from around 15%, while providing a much-reduced 20%-25% of revenue.

The first round of austerity measures, rolled out by the government last summer, impacted sugar as well as petroleum products which sparked rare small anti-government protests across the country including the capital.

But Sudanese officials as well as the IMF argue that more cuts are needed to rein in the deficit, despite staunch resistance by the parliament and labour union.

Today, the Sudanese labour union warned the government against any attempt to increase prices of basic commodities such as bread, sugar and electricity in the 2013 budget.

The union also slammed the finance minister labeling him "non-cooperative" on issues related to workers’ dues and reiterated its demand for bumping the minimum monthly wage to 425 SDG.

Earlier this year Sudanese president Omer Hassan al-Bashir urged the labour union to agree on lifting subsidies in return for raising wages. He also warned that raising wages without careful review of its implications could further fuel inflation and that the economic situation may not allow for immediate increase in pay.

Ordinary Sudanese are seeing large increases in prices eating into their incomes making it increasingly difficult for them to maintain their current living standards without cutting spending.

Analysts say that the fast deterioration in the value of SDG relative to the dollar, decline in national income, shortage in foreign currency and inability to borrow is restricting Khartoum’s ability to buy food on the international market.

Last month Sudan’s inflation was estimated to be at 45.3% compared to 41.6% in September driven mainly by food prices.

(ST)

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Kind regards,

The Sudan Tribune editorial team.
  • 20 November 2012 08:26, by Jalaby

    2 Sudantribune,
    U always talk negative about Sudan but never mention anything about the disaster situation in the south and people die of hunger and tribal conflict!
    We know our economy is suffering because of the stupidity of our government,a peaceful change 4 our failed leaders is underway but who will be able to remove that corrupted Dinka regime in Juba?

    repondre message

    • 20 November 2012 09:40, by South South

      Poor country called Sudan, people do not eat meet and now people will not drink tea. Sweet, South Sudan was everything they were eating. Now they are alone US dollar reach 6.3 SP.

      repondre message

      • 20 November 2012 10:16, by South South

        Poor country called Sudan, people are running away from it. Here is what is in Sudanese News Paper in Arabci today "75631 immigrants have left the country, mostly doctors and professors"
        Why is that wicked called Northern Sudanese and Jalaby ?

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        • 20 November 2012 16:59, by Northern Sudanese

          South South
          dude that is faaaar less than south sudan immigrants, that is probably even less than population of south sudanese in USA alone lol
          immigration is something normal, in egypt 10 million egyptians live abroad

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          • 20 November 2012 21:23, by australian

            NS: everyone wants to leave Muslim countries. The "perfect religion" seems to have flies on it!!

            repondre message

            • 20 November 2012 21:32, by Northern Sudanese

              australian
              of course, everyone wants to leave muslims, no wonder countries like Qatar got at least 80% of their population foreigners, no wonder UAE’s population keeps increasing lol
              here in Sudan, number of foreigners exceeded 4 million already, look it up our vice president made a report about this yesterday

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        • 20 November 2012 17:05, by Northern Sudanese

          South Shit
          you foolish prisoner! we buy meat and sugar everyday and i just went to buy sugar this morning, the price increased by only 10% and the shopkeeper said that the price will remain so for at least 2 months, nothing like that is mentioned in this article. its full of lies!!!

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          • 20 November 2012 18:17, by Observer

            N Sudanese,
            Just shakes my head in wonder at you. You now base your defense on one small shopkeeper.
            How does the shopkeeper know that the price will stay that way for 2 months?
            And if the price goes up more in less than 2 months will you come back here and say so.. keep amusing us with your rabid support of your employer

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            • 20 November 2012 21:25, by Northern Sudanese

              haahahhah you are so funny, when the price goes somewhere up it goes everywhere else up!
              a shopkeeper knows when demand for a product goes up and when it goes down, he also knows when supply goes up and when it goes down and how it will change the price. thats his job, if he doesn’t know these things he never gets profits.
              who cares about your useless head anyway?

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          • 20 November 2012 20:54, by Force 1

            N. Sudanese and Jalaby go and work for your government newspaper that only publish and print what you want your people to hear and know. You’re here with the reporters who only tell the truth the way they see it. If you want to say everything is fine in Sudan then you go and use your government newspapers.You’re here in the wrong place, this is where people tell the truth!

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            • 20 November 2012 21:35, by Northern Sudanese

              Force 1
              of course truth, ignoring 90% of south sudanese in poverty, 80% of south sudanese unable to read or write, more than halve people in food crisis in south, saying only 20% inflation while petrol stations are empty.....what a nice place of truth lol

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              • 20 November 2012 22:08, by Force 1

                Northern Sudanese, we are not running around telling the world everything is fine in South Sudan; we acknowledge the poverty in South Sudan; no one ever deny it; unlike you in Sudan who pretend everything is okay. We have resources that made Sudan rich over the decades; it’s just a matter of time before we use these resources for South Sudan.

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    • 20 November 2012 10:32, by Robot

      Jallaby,
      the article is talking of sugar prices that have risen, in the past you bragged that you have the biggest sugar factory in Africa which i doubt to be operational because of a software not given to you because of sanction, why turn against us?, we have nothing to do with you, we have divorced, period, manage yourselves and leave us alone.

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      • 20 November 2012 21:30, by Northern Sudanese

        Robot
        Africa’s largest sugar factory is due to reach full capacity in 2014, we know that since it was built. we don’t deny prices have gone up, but the way they lie i mean the prices only went up by 10% for the next 2 months. but what we are saying is, this website less to much about sudan and only represents negative stuff about sudan, trying to sent a message that South is better than North

        repondre message

    • 20 November 2012 12:44, by Force 1

      Jalaby,
      What’s the point then of blaming Sudan Tribune reporters when you already know your economy is disintegrating due to your leaders’ inanity! Just because the journalists are telling you what you don’t want to hear doesn’t mean it’s not true.
      Those responsible for making South Sudan government possible are the same ones who will change or keep the government it the way it is!

      repondre message

    • 20 November 2012 17:01, by Northern Sudanese

      Jalaby
      bro i have been repeating this time and time again, this website is built to spread lies about sudan and only mention negative things. they never mentioned roseires dam, or white nile sugar factory when it was built, or the new roads or the progress in Gezira scheme. and it like never mentions disaster in south where more than halve the people are starving from hunger

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      • 20 November 2012 18:23, by Observer

        N Sudanese,
        This website was created by an individual or individuals and just like any business owner they choose the direction of thier business and to what market they feel is best for them.
        There are many newspapers here in Khartoum that print stories from the angle that the owners want to convey and are one sided
        You have a choice- if you don;t like this site’s direction don;t log on.

        repondre message

        • 20 November 2012 21:27, by Northern Sudanese

          Observer
          has someone asked you for your damn opinion? no, so get out!

          repondre message

          • 20 November 2012 21:47, by Force 1

            Northern Sudanese, you’re the one who need to get out! Sudan is not a place for liars like you but it’s a home for truth tellers like Observer!

            repondre message

          • 21 November 2012 07:22, by Observer

            N Sudanese,
            Since when do I have to have your permission to come onto this site and comment?
            You aren;t asked for your opinion either so why should you comment and not me?
            Just because I am not blind like you and say things on here that are the truth and annoy you because you think you are the mouthpiece for our Govt, don’t think you have the right to tell me what to do.

            repondre message

  • 21 November 2012 11:56, by australian

    A bit less sugar in your karkade will not be a bad thing...the obesity problem is as bad as it is in the West. White bread and sugar are weakening the Sudanese people who start off so beautiful and end up fat and waddling.

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