Sudan's government will purchase 200,000 tons of wheat in a deal with the United Nations' World Food Program, the finance ministry said on Monday, in a bid to bolster strategic reserves amid the coronavirus pandemic.
Sudan, which faces an acute foreign currency shortage, will pay for the wheat in Sudanese pounds, saving more than $50 million for its reserves, the ministry said.
The northeast African country consumes two million tons of wheat annually, according to official figures, relying heavily on imports.
The government subsidizes flour, paying 75 percent of the cost of each bag to millers, to allow bakers to fix the price of each loaf. Bakers, however, have complained and threatened to go on strike over rising operating costs and the steady weakening of the Sudanese pound.
Bread shortages, caused by difficulties in raising hard currency to import wheat, triggered mass protests which – with the help of the military - toppled former President Omar al-Bashir last year after three decades in power.
Since August last year a transitional government has taken over the reins of power, but Sudan's economy remains in deep crisis.
Soaring inflation, scarcity of foreign currency and a huge public debt are among the country's most pressing challenges.
Many in Sudan still have to queue for hours to buy bread.
Last week, Sudanese authorities announced an increase in bread prices, meaning one Sudanese pound now buys only a 50-gram loaf of bread, compared to 70 grams previously.
