University of Khartoum

Sugar Trade in the Sudan (A Critical Evaluation of the Role of Sugar Distributional Channels)

Sugar Trade in the Sudan (A Critical Evaluation of the Role of Sugar Distributional Channels)

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Title: Sugar Trade in the Sudan (A Critical Evaluation of the Role of Sugar Distributional Channels)
Author: Mohammed A/Rahman, Elbushra
Abstract: The introduction states the main objectives of the research that are in brief: to conduct a critical assessment on the performance of sugar distributional channels. This to examine the degree of success or failure in fulfilling their objectives of providing sugar for consumers in the appropriate time, place and at a fixed price. Also to ascertain the extent to which Sudan depends on its own production of sugar and to what extent this meets the cosumption. The methodology used in the research is both descriptive and analytical. The research mainly depended on secondary data collected from text books, periodicals, reports and records of the relevant institutions. Also the researcher used his own observations and experience as a member of one of the distributional institutions (Public Corporation for Sugar Trade) as well as primary data by asking and interviewing some officials. The conclusion reveals that the existence of a governmental agency to monopolize and organize sugar distribution helped in executing the selfsufficiency policy. Thus, some surplus for export is obtained, though actual demand still exceeding available supply. It is found that sugar is characterized by government interventionist policies in production, consumption and distribution worldwide. Although the government controls sugar market, there are prices variations. This is because the government agency distributes sugar only to the level of states and leaves other intermediate channels distribute to the consumers, thus additional costs incurred. Domestic prices are higher than the world prices, because of the relatively high production costs and high taxes and duties. But the government imposes restrictions on importation of sugar. There are many problems that affecting the distribution process and contributed to shortages in consumer quota. These are the far distances between production and consumption areas, transportation and storage problems and political and security considerations. In an attempt to solve this problems and to cope with the new economic policies, the government has suspended the 13 monopolistic status of the Public Corporation for Sugar Trade and adopted a new policy which is named the ‘Direct Sale Policy’. But this policy is also faced by many obstacles and problems such as sluggish distocking of the product in the peak season, which led to shortages and higher prices in the states, mal-practices such as speculation and monopoly by traders and low returns for the production companies. The research proposed some recommendations, the important ones are: 1. To cut prices, high production costs and taxes and duties should be reduced. 2. To provide sugar regularly during the whole course of the year, storage capacities should be re-distributed, buffer-stock should be built and transportation facilities should be enhanced.This is can be acheived through constructing new highways, improving the railways’ performance and extensively using river transportation. A shortages forecasting unit should be established and war and political interference must be ceased. 3. Concerning the role of sugar distributional channels, Sudanese Sugar Company should confine its objectives on sugar production. Contrariwise Kenana should continue to play the prescribed role of producing and marketing some of its product. While the PCST should be re-instituted with some modifications in its objectives such as to inter in a form of arrangements with wholesalers and retailers to render sugar to consumers in the lower levels at the set price. This mechanism can be carried out through contracts that are awarded in the basis of tenders.
URI: http://khartoumspace.uofk.edu/handle/123456789/11286
Date: 2015-05-24


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