Sudan Export Ban on Key Crops Has Hit Traders Hard

Sudanese farmers like Khair Daoud depend on peanut crops as a key part of their income. AFP
Sudanese farmers like Khair Daoud depend on peanut crops as a key part of their income. AFP
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Sudan Export Ban on Key Crops Has Hit Traders Hard

Sudanese farmers like Khair Daoud depend on peanut crops as a key part of their income. AFP
Sudanese farmers like Khair Daoud depend on peanut crops as a key part of their income. AFP

Sudan has been a top producer of peanuts for so long that the nutritious variety is called the "Sudani" -- but a government export ban has left traders reeling.

Rimaz Ahmed, commercial director of Abnaa Sayed Elobeid, one of Sudan's major agricultural export companies, was stunned by the sudden decision of the trade ministry to ban the export of raw peanuts.

The government said it wants Sudan to process the nuts inside the country to earn more money. But traders said they were not given time to prepare.

"It's a shock because we were not warned," Ahmed said, of the April 1 restrictions.

"Overnight, we lost important markets. Immediately, India replaced us."

The two main customers for Sudan's peanuts were China and Indonesia, AFP reported.

On the wall of Ahmed's office, a poster in English praising the crops -- "Peanuts: a Culture with the Flavors of Sudan" -- seems to be from another time.

The export ban was a shock for many in the African nation, which, according to the UN, is the fifth largest peanut producer, with 14 percent of world production.

Protein-rich peanuts, which are also called groundnuts, provide rural employment and much needed foreign exchange.

Before the trade ban, peanuts were Sudan's fifth biggest international earner after gold, sesame, oil and livestock. The decision comes at a tough time for the country.

Sudan produced 1.5 million tonnes in 2019, worth 205 million dollars, according to central bank figures, up from 59 million dollars earned in 2018.

Trade Minister Madani Abbas Madani defended halting exports "to maximize the market value of peanuts and the added value of Sudanese products, in light of climate change which affects the quality" of the product.

For the government, the hope is that Sudan can earn more money through selling products from processed peanuts -- such as oil or butter.

Critics of the ban on exporting unprocessed nuts have questioned why it was introduced so abruptly, suggesting that it might be a personal whim of the trade minister.

But the minister has insisted his decision was "within the framework of government policy".

He has yet to convince traders, however.

"We agree in principle it may be good for the country, but we are not at all prepared," Ahmed said.

"We have neither the machines nor the know-how. It will take time -- and in the meantime we have lost our big customers."

For Sudan, a predominantly agricultural country, the ban could have a major impact on rural employment.



Stocks Stabilize, Gold Hits Record before Trump Tariff Reveal

FILE PHOTO: Gold bars are displayed at a gold jewelery shop in the northern Indian city of Chandigarh May 8, 2012. REUTERS/Ajay Verma (INDIA - Tags: BUSINESS COMMODITIES)/File Photo
FILE PHOTO: Gold bars are displayed at a gold jewelery shop in the northern Indian city of Chandigarh May 8, 2012. REUTERS/Ajay Verma (INDIA - Tags: BUSINESS COMMODITIES)/File Photo
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Stocks Stabilize, Gold Hits Record before Trump Tariff Reveal

FILE PHOTO: Gold bars are displayed at a gold jewelery shop in the northern Indian city of Chandigarh May 8, 2012. REUTERS/Ajay Verma (INDIA - Tags: BUSINESS COMMODITIES)/File Photo
FILE PHOTO: Gold bars are displayed at a gold jewelery shop in the northern Indian city of Chandigarh May 8, 2012. REUTERS/Ajay Verma (INDIA - Tags: BUSINESS COMMODITIES)/File Photo

Asian equities rose on Tuesday following Wall Street's overnight gains, while gold hit an all-time peak and Treasury yields fell as markets awaited details of US President Donald Trump's reciprocal tariffs.
The Japanese yen strengthened as traditional haven assets drew demand.
At the same time, the risk-sensitive Australian dollar rebounded after the Reserve Bank of Australia left interest rates steady, as widely expected, but warning of "pronounced" global uncertainty.
Regional stocks found some respite on the first day of April after being battered in March by worries that Trump's trade war could trigger stagflation or even a US recession, reported Reuters.
Investors are nervously awaiting April 2, a day Trump has dubbed "Liberation Day", when he has promised to unveil a massive reciprocal tariff plan.
Australia's benchmark equity index advanced 1%, while South Korea's KOSPI climbed 1.9% and Taiwan's equity benchmark rose 1.7%, following steep drops on Monday.
At the same time, Hong Kong's Hang Seng and Japan's Nikkei gave up gains of 1% or more to be flat to slightly higher. Mainland Chinese blue chips were also little changed after struggling all session.
Pan-European STOXX 50 futures added 0.35%.
The US S&P 500 gained 0.55% on Monday, snapping a three-day losing run, but futures pointed 0.34% lower.
"It is possible that a significant portion of last night's rebound in the key (Wall Street) indices was attributable to month-end and quarter-end rebalancing flows, as well as short covering ahead of Trump's Liberation Day, amid considerable uncertainty about what comes next," said Tony Sycamore, an analyst at IG.
"US equity markets are priced for a slowdown in growth and earnings. However, they are not priced for a recession, and if the US economy enters recession, US stock markets could easily fall by another 10%."
Bullion powered to a record high for a fourth straight session, hitting $3,148.88 per ounce.
"On top of general risk aversion, investors are increasing allocation to gold with the Trump administration's trade policy threatening the dollar's special reserve status," said Kyle Rodda, senior financial markets analyst at Capital.com.
"The fundamental backdrop remains strong for gold."
DOLLAR UNDER PRESSURE
Demand for the safety of Treasuries sent yields lower on Tuesday, with those on benchmark 10-year notes sinking some 5 basis points to 4.1920%.
That put pressure on the dollar, which slipped 0.08% to 149.85 yen. The euro was steady at $1.0813.
The Aussie added 0.14% to $0.6258. The RBA held rates at 4.1%, having just cut them by a quarter point in February for the first time in over four years.
"Geopolitical uncertainties are also pronounced," the RBA said in its statement, adding that US tariffs are having an impact on confidence globally.
"The RBA's statement suggests they're inching towards their next cut, but in no rush to signal one," said Matt Simpson, senior market analyst at City Index.
"The RBA just want more time to be confident that policy is on the right track."
Bitcoin was slightly higher at around $83,040.
Oil prices rose, adding to the 2% surge from Monday. Brent gained 0.23% to $74.94 a barrel, while US West Texas Intermediate crude advanced 0.22% to $71.64.
At the weekend, Trump threatened secondary tariffs on Russian crude and on Iran. He also warned Iran of bombing if Tehran did not come to an agreement with Washington over its nuclear program.