The Smuggling of Gum Arabic from Conflict-Ridden Sudan:…

The Rapid Support Forces (RSF) in Sudan have taken control of gum arabic production amidst ongoing conflict, leading to widespread smuggling and unregulated trade. Significant changes in markets have emerged, with low-priced gum being offered by traders from neighboring countries. Industry insiders warn of the impact on global supply chains, highlighting the urgent need for certification and legitimacy within the market.

The paramilitary Rapid Support Forces (RSF) in Sudan, currently engaged in conflict with the national army since April 2023, has gained control of key gum-harvesting regions. The RSF now requires Sudanese traders to pay a fee to market the raw gum, which then reaches neighboring countries without proper certification. Informal border markets have become prominent for these transactions, often compromising the legitimacy of the product’s origin.

Recently, countries such as Chad, Senegal, Egypt, and South Sudan, which have previously produced little to no gum arabic, have begun aggressively pricing their offerings lower than Sudan’s traditional rates, although without conflict-free certifications. Herve Canevet from Eco-Agri notes the difficulty in tracking the origins of gum arabic, stating that, as per his assessment, all gum from Sudan is likely smuggled given the absence of authoritative oversight.

The Association for International Promotion of Gums (AIPG) has issued statements distancing itself from allegations connecting the gum arabic supply chain to military factions. However, industry insiders warn that the surge of unregulated trade risks infiltrating the sourcing systems utilized by major global ingredient supply companies. Action from companies such as Ingredion and Nexira indicates a shift toward more diversified sourcing to mitigate the impacts of the conflict.

Traders including Mohammed Hussein Sorge have reported receiving low-priced offers for gum from Senegal and Chad, with concerns raised about the legitimacy and origin of these products. Sorge refrained from purchasing the gum due to the suspicion that it may have been obtained through illicit means. He highlighted that the RSF’s control over production areas facilitated the smuggling activities.

The conflict has altered traditional trade routes: gum is now bypassing established channels in favor of informal markets across the South Sudanese border. Traders are operating under RSF protection, playing a role in the supply chain as they convert profits into U.S. dollars. South Sudan’s Information Minister has distanced the government from responsibilities related to such trades.

Current smuggling routes have extended toward the Central African Republic and online sales have emerged showcasing illegally sourced gum. Reports from industry sources like Isam Siddig indicate organized networks capitalizing on the chaos following the RSF’s control, with products appearing online in branded packaging belonging to former gum processing firms.

Overall, the dynamics of the gum arabic market have shifted dramatically due to the ongoing conflict in Sudan, leading to significant uncertainty regarding the availability and legitimacy of the product.

The conflict in Sudan has drastically impacted the gum arabic trade, with the RSF exerting control over production and trading channels. The lack of oversight has led to widespread smuggling, undermining the integrity of sources. Consequently, this presents challenges for global companies relying on legitimate supply chains. The situation underscores the dire interactions between conflict dynamics and international commodity markets.

Original Source: m.economictimes.com