— 30 — Excessive Fluctuations in Value.—The outstanding feature of the local grain market is the uncontrolled and excessive fluctuation in value. Demand is naturally inelastic, exhibiting, however, a steady increase with the growth of population, and the price curve follows very closely that of production, modified only by the release of stocks from the " matmuras " or native grain pits.

Imported grain only figures as a controlling factor when prices approach a famine level. Similarly, the downward trend following seasons of good general rainfall, is checked at a very low level by the temporary organisation of an export trade. The year 1910 coincided both with the lowest mean prices recorded during the period under review and the opening of the Sennar Railway, and 48,000 tons of dura were exported via Haifa and the Red Sea ports. In the following year values hardened and exports were limited to 26,000 tons. During 1012 and 1913 imports of dura were in excess of exports, but the quantities were negligible and neither exercised an infiuence on the course of prices nor served to relieve the prevailing distress.* In 1914, however, the Government was compelled to import large quantities of Indian duraf for distribution to famine areas, which had the incidental effect of releasing grain " cornered " by native merchants in the Omdurman " suk." The slump in prices which followed the breaking of the drought in 1914 further demonstrated the isolated character of the market and the absence of machinery for dealing with unexpected grain surpluses.

Producer and consumer are alike concerned in securing a market organisation which will smooth out feverish fluctuations in prices and permit a healthy and sustained expansion of trade. Unfortunately, a season of deficient rainfall generally coincides with a poor Nile flood, the failure of basin crops and enhanced costs of sakia irrigation ; good rains, on the other hand, spell a high flood, large basin-crops and cheap sakia-water.

Storage and Forced Sale.—A primitive method of dealing with the situation thus created is found in " matmura " storage. The surplus grain of good years is placed in pits dug in the ground and lined with a plaster composed of mud and cow-dung. The climate of the Sudan is particularly favourable to this method of storage, and the system has undoubtedly served a useful purpose. Protracted storage, however, in such pits results in damage, more or less serious, from Exported Imported 1912. (Nine months.)

Tons.

720 4,439 1913. (Nine months.)

Tons.

2,005 5,083 {Annual Report : Director of Gusloms.)

t 11,03S tons, valued at £E.85,814, in addition to 16,198 tons, valued at £E.127,511, imported by the public.