RIYADH, SAUDI ARABIA — The state-owned Saudi Grain Organization (SAGO) said it will reimburse area farmers for any wheat price increase if it had made international tenders at a higher price than the approved one, Reuters reported.
The decision includes farmers who supplied wheat during the current season. It comes after SAGO’s board agreed to review the purchase price of wheat from local farmers for the procurement season that ends in October.
SAGO bought 495,000 tonnes of wheat in an international tender for shipment from November to January 2023 with an average price of $441.93 per tonne, Reuters said.
The board previously approved two increases in local wheat procurement prices, in line with the increase in international prices.
In March, SAGO approved an increase in the local wheat procurement price to 1,700 riyals ($453.14) per tonne.