Although Sudan is a country with enormous agricultural potential, agriculture has not prospered over the last two decades and Sudan now finds itself a bankrupt net importer of food. Much of the country's agricultural resource base is found in the rainfed agricultural region of Western Sudan, which includes Kordofan. This study focuses on Kordofan, and reports on data gathered during work for the Western Sudan Agricultural Research Project. Rather than following the production orientation usually employed by economists, it addresses issues related to the role of marketing in agricultural economic development. Marketing in Kordofan, as well as production, is subject to disruption because of climatic variations characteristic of arid and semi-arid regions. Extended annual dry periods and droughts distort price performance for agricultural commodities and cause shifts in marketing channel structure. Risk levels are substantially increased for producers and small traders, while at the same time they must take on increased responsibility for many channel functions. Marketing also suffers from infrastructure deficiencies: roads are often impassable during the rainy season, and storage losses become huge over the course of a year. The private marketing system in Kordofan has adapted to these conditions, and is performing quite effectively, efficiently, and equitably, given the adverse conditions. Competition is extensive, farmers have many alternatives when selling crops, and merchants operate on fairly modest profit margins. A widespread bias against the private sector has led to extensive government intervention into marketing spheres. These policies include direct operation of some marketing channels, manipulation of price structures through artificial exchange rates and price controls, and restrictive licensing practices. Wherever such policies have been applied in Kordofan, they have led to declining production of government controlled crops, they have restricted competition in marketing channels, and they have lowered living standards for producers and consumers. Sudan has not successfully identified areas where private channels in Kordofan cannot solve problems, and which therefore require public intervention. The government seems to have based its economic decisions upon ideological considerations and intervened in areas which it cannot perform as well as the private market
