Saudi Arabia’s main state wheat buying agency, the Saudi Grains Organization (SAGO), has purchased an estimated 689,000 tons of wheat in an international tender.
This comes in line with the kingdom’s plan to boost its strategic stock of wheat and sustain it at safe levels, meeting all the needs of wheat milling companies and maintaining the strategic stock, said SAGO governor Ahmad al-Fares said in a statement.
SAGO seeks to secure Saudi Arabia’s wheat needs until early August 2022, he noted.
The organization invited 24 international companies specialized in the grain trade, 13 of which took part in the bid.
Four companies with the lowest price for the required shipments were awarded the bid, Fares explained.
By awarding the seventh batch for this year, SAGO will have contracted for an estimated four million tons of imported wheat since early 2021.
Also, about 576,000 tons of local wheat were purchased from farmers for this season, bringing SAGO’s total purchases to 4.6 million tons of wheat, of which about two million tons will be supplied next year.