The formal agricultural financial system in Sudan is considered as one of the main pillar for agricultural development. It contributes in reducing level of incomes inequality in rural areas. This paper addresses the farmer income distribution and its impacts on poverty incident in the rural area of the River Nile State of North Sudan. The inequality and low returns among the poor households might attribute to the inadequate formal microcredit and lack of agricultural policies. This research aims to explore the impacts of formal microcredit upon the farm income distributions of formal agricultural financial institutions in area of the study. To achieve the aim of the study, this research applied the Gini-coefficient technique and descriptive analysis. Both primary and secondary data collected and used to attain the aims of the study. The primary data were collected using structured questionnaires on 100 randomly selected respondents through the multi-stage stratified random method. The findings indicate that the income of formal agricultural microcredit resources have equalizing positive effects upon income inequality. Assume ceteris paribus, an improvement in income share from formal agricultural microcredit resources will generate a reduction in total income inequality of household.
Keywords: Inequality effects; formal microcredit and income inequality
Reference to this paper should be made as follows: Ahmed, E. A., Faki, H. H. M. and Noor, M. S. Z. (2018) “Significant bioactive compounds in crude methanol extracts and their fractions of Acacia Seyal Gum”, Int. J. Sudan Research, Vol. 8, No. 2, pp.73-86.