Effectiveness of Price Policies in Sudan

Abstract

The purpose of this study is to explore the effectiveness of price policies in Sudan. There have been fast increases in the prices of most consumer goods and services since January 2016. Such increases are far more than the percentage decreases in the free-market exchange rate of the Sudanese currency. Besides, there have been no considerable increases in taxes. The increases in prices are mainly in retail prices. No action has been taken by policy makers, as they respond that they abide with economic liberalization. The study outlined relevant economic theory and policy practice, and pointed out that economic policies include price control in cases of market imperfection. A part of the study is analysis of the impact of a program for sugar supply and prices during the month of Ramadan in the last two years in Khartoum state. Descriptive analytical methodology using SPSS and a survey data is adopted. The result is that the program is found to be very effective. It is recommended that in cases of monopoly, oligopoly, monopolistic competition, and greedy practices by retailers, a fair price ceiling needs to be placed on retail prices. This necessitates a strong regulation authority. It is also recommended that sale points and consumer cooperatives need to be adopted as one of the policies to limit increases in prices resulting from speculation and retailers behavior.