Khartoum moves to quash rumors of impending bread crisis

July 26, 2015 (KHARTOUM) – Authorities in Khartoum state announced the arrival of seven cargo ships carrying imported flour and asserted that it has strategic stockpile of flour that covers three months for the heavily populated capital for in an apparent attempt to dispel fears of an imminent bread crisis.

Sudanese flour market is controlled by three major companies namely Sayga flour mills owned by prominent businessman Osama Daoud, Weta flour mills which is owned by Ibrahim Malik and the government-owned Seen flour mills. It costs the cash strapped nation $2 billion annually to import flour.

Sudan consumption exceeds two million tons of wheat annually, while the country produces no more than 12 to 17% of annual consumption.

On Saturday, rumors spread claiming that Khartoum will witness a bread crisis in the next two days due to the termination of contracts with Sayga mills and change in dollar exchange rate for import purposes as well as orders by the government to Sayga not to produce any wheat products other than bread.

According to reports, Sayga is processing its current wheat stockpile which is enough for just two days after which it will suspend production.

Sources last June projected that raising the value of dollar for import purposes would impact weight or price of bread.

Last April, a similar crisis occurred causing bread shortages but was resolved after Sayga Flour mills returned to service. A dispute had broke out with major mills in the country after they refused to accept locally produced wheat on the grounds that it is of poor quality.

(ST)