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Asharq Al-Awsat
Asharq Al-Awsat
World
Khartoum – Ahmad Younes

Sudan: Public Outrage Following High Commodity Prices

Demonstrations began over fuel subsidies. (File Photo: Reuters Mohamed Nureldin Abdallah)

Consumer goods’ prices increased in Sudan to an extent that it left people unable of meeting their basic needs, whether they are of limited, medium or even high incomes.

This has led to growing public discontent which the government couldn't cope with, except by making promises that cannot withstand the high prices.

Justifications offered by the authorities failed to persuade the people who accused the government of incompetency in providing a decent life for the citizens. Since the announcement of the controversial budget of 2018, commodity prices have increased sharply and incomes remained fixed.

A recent study found that the current minimum wage in the country covers only 7.3 percent of the needs of a family of five. The study found the cost of living is at a minimum of 5,900 Sudanese pounds.

The study, prepared by the Sudanese Central Committee's Central Trade Unions Office last year, stated that the minimum wage in Sudan is 625 pounds per month, about 22 dollars at the official dollar rate.

The budget for the year 2018, described as "catastrophic", led to doubled prices at a time when the state failed to control it completely. Under this budget, bread price rose to "one pound" per piece, after it was for two pieces of bread, and the price of meat rose from 70 pounds per kilo to 140.

Other commodities’ prices also increased and doubled, mainly consumer goods.

N. M., wife of an employee and mother of three children, said shopping for a month used to cost 3,000 pounds in 2017, but since the beginning of 2018 the bill has increased to 6,000 pounds per month.

"6000 pounds is not enough to buy the same products I used to buy last year," she said.

The mother stated she had to reduce her shopping list to the necessities and had to buy products made in Sudan. She indicated that the study conducted by the Union Office no longer reflects the reality of middle-class families, let alone the large families, or the low-income families of displaced persons and those living on the outskirts.

In a statement issued last April, the Communist Party asked the workers' union to increase the minimum wage to 1,200 per month. It said that official bodies set the minimum living expenses for a 5-member family with 6,000 pounds with a minimum wage of 625 pounds.

The party recommended the authorities increase the minimum wage to 1200 pounds, although it barely covers expenses for five days of a month.

The Central Bureau of Statistics indicated that inflation rose to 57.65 percent in April, after it was in January of the same year about 52.37 per cent.

According to a statement issued by the agency, Food and Beverage Group is the main contributor to the inflation, with 55.74 percent in the rates.

Earlier this year, the government approved economic measures that included raising the dollar in banks to 18 pounds, compared to 6.6 pounds, raising subsidies on wheat and assigned its import to the private sector, which led to a 100 percent rise in bread prices.

Prime Minister Bakri Hassan Saleh has ordered the establishment of "reduced markets" for major commodities, but the idea is highly criticized by citizens.

H.A, worker, stated that the prices of goods offered in these markets doesn’t differ much from their price in other markets, adding that their quality is poor and many important items are not available.

Since the outbreak of the economic crisis and the terrible deterioration in the exchange rate of the Sudanese pound, President Omar al-Bashir has been holding a regular meeting with ministers of the economic sector and the Central Bank.

During those meetings, decisions were made to declare war on corruption. They also agreed to reduce excess liquidity by restricting withdrawals from bank accounts in order to stop the depreciation of the pound against foreign currencies.

This led to increase of Sudanese pound in parallel market to 37 pounds per dollar, however, prices of major commodities and consumer prices continued to rise.

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