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Friday, 25 March 2011 - Soaring prices stoke discontent in Sudan |
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    Edition: U.S. Article Comments (0) Full Focus Editor's choice A selection of our top photos from the past 48 hours.   Full Article  Follow Reuters Soaring prices stoke discontent in Sudan Tweet Share this By Deepa Babington KHARTOUM (Reuters) - Dufallah Al-Terafi's fruit and vegetable stand was once a bustling roadside shop, crowded with workers picking up ripe tomatoes and cucumbers for dinner on their way home in the evening. Today, Al-Terafi... Email Print Related News Thousands chant "freedom" despite Assad reform offer Thu, Mar 24 2011 Special report: The revolution in central banking Thu, Mar 24 2011 Japan nuclear crisis still a serious concern Wed, Mar 23 2011 Syrian forces shoot protesters, kill 6 in mosque Wed, Mar 23 2011 Yemen president warns of civil war, U.S. concerned Tue, Mar 22 2011 Analysis & Opinion Portugal’s government collapse complicates Europe’s problems UK budget deserves 6 out of 10 Related Topics World » By Deepa Babington KHARTOUM | Fri Mar 25, 2011 11:30am EDT KHARTOUM (Reuters) - Dufallah Al-Terafi's fruit and vegetable stand was once a bustling roadside shop, crowded with workers picking up ripe tomatoes and cucumbers for dinner on their way home in the evening. Today, Al-Terafi waits in vain for customers as dusk falls over the Sudanese capital. His mangos and apples sit untouched in their cartons, the bananas hanging from a hook don't get a second glance -- the price tag is enough to scare off most. "Look at all this just sitting here, noone comes to buy anymore because prices have gone up," he said, pointing to tomatoes now 3 Sudanese pounds ($1) per kilo, up from about 1.5-2 pounds a couple of months ago. "My business is suffering too much because of this." Al-Terafi and his customers are among a growing number of Sudanese squeezed by a surge in food prices, which is fuelling anger in a country already weighed down by years of conflict, U.S. sanctions and more recently, an economic crisis. Inflation in the country's north -- where about 80 percent of the population lives -- was 16.9 percent in February, up from 9.8 percent in November, when the central bank effectively devalued the pound to boost liquidity in the financial system and erase the need for a black market, a move that tends to push up inflation. Soaring food prices -- food and drinks inflation stood at 19.9 percent in February -- accounted for a big part of the rise, in a worrying sign for a government anxious to avoid mass protests that toppled leaders in neighboring Egypt and Tunisia. Forced to cut subsidies on petroleum products and raise the price of sugar this year to cut the budget deficit, Khartoum blames its economic woes largely on speculation and hoarding. Analysts point to years of mismanagement and overspending. "The real danger for the Sudanese government is that the worst is yet to come -- there's no reason to assume that food prices are going to come down or that the fiscal situation is going to get better," said Harry Verhoeven, a PhD fellow at Oxford University who focuses on the Sudanese economy. BARE NECESSITIES For hospital worker Saleh, 48, the worst is already here -- his salary of 500 Sudanese pounds a month is not enough to put food on the table for him and his three children, he says. "This small bag of vegetables is five Sudanese pounds," he said, pointing to a plastic bag of cucumbers and tomatoes. "If I buy some vegetables for lunch, then I have nothing to bring home for my children. We're all suffering to the point of dying." Sudanese frequenting the fancier supermarket up the road featuring imported chocolates and cookies have not been spared the pain either. The store owner, who declined to be named, says import restrictions meant he now had to buy items like Kit Kat chocolates on the black market, forcing him to double prices. "One day I sat here just watching what people bought -- they were only buying basic necessities like milk, yogurt and sugar," he said. "They've stopped buying cornflakes or biscuits, because it's not considered a necessity anymore." The surging prices have been among complaints cited by youth groups that have taken to the streets in sporadic protests that have been swiftly dismantled by security forces. The protests have so far failed to attract mass support, but some activists say that it may take the rising cost of living -- rather than any desire for reform or a change in the government -- to push war-weary Sudanese out onto the streets. 1 2 Next World Tweet this Share this Link this Digg this Email Reprints   We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language, all capital letters or appear to be spam, and we review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. Comments (0) Be the first to comment on reuters.com. Add yours using the box above. Social Stream (What's this?) © Copyright 2011 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback   Mobile Newsletters RSS Podcasts Widgets Your View Analyst Research Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Reuters on Facebook Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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