RIYADH: The Saudi Grain Organization, also known as SAGO, has approved an exceptional hike in its local wheat procurement price for its agricultural season, a statement on the company website said.
The price will rise by SR100 ($26.6) per ton over the previously set price of SR1440 for each ton.
SAGO uses the Isalmic calendar for its seasons, with the above increase set for1443/1444 Hijri season. The year 1444 will start July next year.
This decision comes as the government aims to empower wheat farmers in light of recent developments in global prices, as well as a rise in their costs of inputs, according to the statement.
The organization purchases local wheat from farmers due to a previous cabinet decision which stipulated that SAGO will procure wheat from farmers who decide to grow it instead of green fodder.
This is for a period of five years and purchases would not exceed 1.5 million tons per year with prices that are set by the organization, guided by the prevailing international prices.
SAGO was established by a royal decree in 1972 and was reorganized and renamed in 2016. The organization has the objectives of managing, operating and developing silos as well as supervising, organizing and regulating flour milling activity.