The Effect of Bread Price Increase on Household Consumption in Khartoum North Province

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Babiker, Rania Farouk Abedalrhman
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The consumption of wheat in Sudan grew largely due to increased imports of low price wheat. However, the recent increases in world prices of wheat the prices of domestic wheat flour and bread also raised since bread is on of the most important products of wheat industry, therefore, the purpose of this study was to assess the impact of increases in bread price on the consumption pattern of the household in three areas in Khartoum State, namely Aldroshab, Shambat Alhila and Alsafia with Almogtribeen in Khartoum North. The study also aimed to assess the price elasticity of bread and profitability of bakeries in the study area. The study found that bread consumption has different responses among the households of the three areas. The price is found to be elastic in aldroshab area, non elastic in Shambat Alhila and Alsafia with Almogtribeen. The study also found that the number of family members was an important factor in determining the quantity of bread demanded. Budget analysis indicated that both traditional and modern bakeries benefited from the increase in bread price. The study recommended the increase of domestic production of wheat in Sudan through better research and extension services. The study also recommended the improvement of road infrastructure to reduce the high cost of transportation of wheat through and out of the country.
February 2006
Bread Price