Grain Organization Adopt Exceptional Increase for Purchase Price for Locally Cultivated wheat

The Board of Directors of the Saudi Grain Organization (SAGO) agreed to exceptionally increase the purchase price of local wheat for the agricultural season 1444/1443 AH, by SR100 per ton, to be added to the previously approved purchase price set at SR1440 per ton.

Such an exceptional increase in the purchase price of local wheat comes within the framework of the state’s keenness to empower licensed farmers to grow wheat, in light of recent global price developments, in addition to the high prices of production inputs.

It is noteworthy that SAGO’s purchase of local wheat from farmers translate the Cabinet’s decision regarding the controls to stop cultivation of green fodder, which included that SAGO shall purchase wheat from farmers if they choose to grow wheat as an alternative to green fodder, for a period of 5-year, provided that it shall not exceed 1.5 million ton for each year, at prices determined by the SAGO, guided by the prevailing international prices.