Saudi Gazette report

RIYADH — The Board of Directors of the Saudi Grains Organization (SAGO) approved an increase in the purchase price of local wheat for the current agricultural season, bringing it to an amount of SR1,700 per ton.

SAGO, the state grain purchaser, stated that this is the second increase of wheat price for this season, in light of its periodic review of developments in the international wheat markets.

It is noteworthy that SAGO’s purchase of local wheat from farmers comes in implementation of a Cabinet decision of 1438 AH, and an amendment in the decision by the Cabinet in 1441 regarding the controls to stop the cultivation of green fodder.

The Cabinet had also directed SAGO to purchase wheat from farmers if they choose to grow wheat as an alternative to green fodder for a period of five years, and not exceeding one and a half million tons per year, at prices determined by the SAGO in line with the prevailing international prices.