July 5, 2022
Saudi Arabia's state grains buyer to reimburse farmers for wheat price increase
SAGO, Saudi Arabia's state grains buyer, said they will reimburse local farmers for any increase in wheat prices if international tenders were awarded at a price surpassing approved prices, Reuters reported.
The ruling will apply to domestic farmers who provided wheat during the current growing season.
SAGO said the choice was made after the board of directors decided to review the price SAGO would pay local farmers for their wheat during the current procurement season, which will end in October.
In an international purchasing tender last week, the grains buyer purchased 495,000 tonnes of wheat for shipments from November 2022 to January 2023, with an average price of US$441.93 per tonne.
In order to keep pace with rising global prices, SAGO's board of directors previously approved two increases in the local wheat procurement price for the current growing season.
The local wheat procurement price was raised to SAR 1,700 (~US$453.14; 1 SAR = US$0.27) per tonne for the current season by SAGO in March.