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Sudan hikes flour subsidies by 40% to lower bread prices

The government would spend $737,000 daily instead of $25 million, the Finance Ministry said..

Picture: Supplied.

CAIRO – Sudan increased flour subsidies by 40%, the Finance Ministry said on Saturday, after the reduction of subsidies this year sent bread prices higher and triggered protests.

The government would spend 35 million Sudanese pounds ($737,000) daily instead of $25 million, the statement added.

A decision to reduce bread subsidies this year sparked rare nationwide protests after bread prices doubled. Inflation climbed to a record 66% in August, one of the highest rates globally.

Sudan’s economy has been struggling since the south seceded in 2011, taking with it three-quarters of oil output and depriving Khartoum of a crucial source of foreign currency.

Sudan sharply devalued its currency in October after a group of banks and money changers was tasked with setting the country’s exchange rate under a new system established by the government to tackle an acute shortage of foreign exchange.

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