Sudan Flour Mills: Price Control Non-Compliance Defies El Burhan Intervention

• Authorities in Blue Nile state have permitted bakeries to sell two loaves of bread for SDG 1,000 due to rising costs.
• Bakery owners in several states report that flour manufacturers are not complying with price control directives.
• Despite direct intervention by General Abdelfattah El Burhan, flour companies increased the price of a 25kg sack of flour to SDG 190,500.
• The Khartoum State Bakers' Association spokesperson expressed hope for reduced production costs following the intervention.
• A severe flour shortage in Khartoum state has led to less available bread and consumers getting half the quantity for the same price.

A central issue contributing to this crisis is the widespread Sudan flour price control non-compliance by manufacturers.

The baking industry in Sudan faces severe challenges, with authorities in Blue Nile state recently permitting bakeries to sell two loaves of bread for SDG 1,000. This decision underscores the intense economic pressures confronting the sector, particularly as the cost of essential production inputs continues its sharp ascent.

A central issue contributing to this crisis is the widespread Sudan flour price control non-compliance by manufacturers. Bakery owners across multiple states, including Gezira, North Kordofan, and Khartoum, have voiced significant complaints, alleging that flour mills are disregarding established price directives. This non-adherence to Sudan bakery price regulation directly impacts the operational viability of bakeries.

The financial strain on bakeries has been exacerbated by recent market movements. Flour companies implemented another price hike on Sunday, pushing the cost of a 25kg sack of flour to SDG 190,500. This represents a substantial increase from the previous price of approximately SDG 165,000. Furthermore, bakery owners have reported difficulties in securing supplies, with sales agents for some companies allegedly claiming unavailability of flour and failing to fulfill orders.

The escalating crisis has drawn high-level attention, with General Abdelfattah El Burhan, who heads Sudan's Transitional Sovereignty Council, directly intervening in an attempt to address the issue of price controls. Despite this significant General Abdelfattah El Burhan intervention, evidence suggests that flour mills continue to disregard official directives. Bakery owners have even utilized social media platforms to share videos illustrating this ongoing non-compliance.

Essam Okasha, serving as the spokesperson for the Khartoum State Bakers' Association, has publicly articulated the industry's concerns. He highlighted the relentless increase in the prices of bread-making inputs, which continues to squeeze profit margins and threaten the sustainability of bakeries. Okasha expressed a hopeful outlook, anticipating that El Burhan's direct involvement would lead to tangible outcomes and a reduction in production costs in the near future.

However, the market reality has presented a stark contrast to these hopes. The latest price increases by flour companies, occurring even after the high-level intervention, underscore the persistent challenges in enforcing Sudan flour price control non-compliance. The continued disregard for regulations by manufacturers, despite governmental pressure, indicates a complex and deeply entrenched problem within the supply chain for this vital food commodity.

The ripple effects of these supply chain disruptions and regulatory failures are profoundly felt by consumers, particularly within Khartoum state. A severe flour shortage in the region has led to a significant reduction in the availability of bread in local markets, coinciding with a dramatic surge in prices. This double blow means that consumers are now receiving only half the quantity of bread for the same amount of money they previously spent.

This situation highlights the broader challenges facing Sudan food commodity regulation and the critical need for effective oversight to ensure food security. While the bread crisis deepens in many areas, there are some contrasting reports from other regions. For instance, in El Gezira state, market prices for maize and other agricultural crops have reportedly decreased. This positive development is attributed to the easing of restrictions on crop movements and an increase in supplies following the recent harvest.

The disparity in commodity price trends across different states, such as the rising Blue Nile state bread prices and the falling crop prices in El Gezira, illustrates the fragmented nature of Sudan's current economic landscape. The ongoing struggle to enforce price controls on essential goods like flour continues to place immense pressure on the populace, making daily staples increasingly unaffordable and scarce for many families.

Compliance officers and legal counsel for food manufacturers and distributors in Sudan should assess their adherence to state-mandated price controls and monitor for increased enforcement or new directives following government intervention.

Source: Original reporting via Radio Dabanga