Quotes: US MENA   Enter Symbol: NewsLetter: Search: advanced

Saudi Arabia- Grains agency allays fears of flour shortage  Join our daily free Newsletter

MENAFN - Arab News - 31/01/2013

No. of Ratings : 0
Add to Mixx!


 


The GOGSFM says that not only is there no shortage of flour, but that it, in fact, has a stock of 2.5 million sacks as an emergency reserve.
(MENAFN - Arab News) The General Organization for Grain Silos and Flour Mills (GOGSFM) has again denied reports of a shortage of grain, flour or any other essential food item in the Kingdom.

"There is no crisis or shortage of grain or any other essential commodity in the domestic market as the GOGSFM has been supplying all consumer requirements in sufficient quantities, in addition to stocking 2.5 million sacks as an emergency reserve," Director General of GOGSFM Walid Al-Khereiji said.

While the GOGSFM is supplying essential commodities in sufficient quantities, some distributors are creating black markets, he said.

Al-Khereiji was reacting to a statement by the committee for bakers at the Jeddah Chamber of Commerce and Industry which said that a black market for flour was growing in Jeddah and would adversely affect investments in the sector.
The GOGSFM also recently held a press conference denying any shortage in flour supplies in the western region, following reports repeatedly published in Saudi newspapers about a supposed shortage.

Al-Khereiji alleged that the shortage was a fake one created by distributors who receive supply that can cover more than the region's need of the product as well as by some contractors who are diverting the supplies to illegally operating bakeries instead of supplying the commodities to licensed bakers.

The official called on the distributors and beneficiaries who did not update their data to complete the updating process on the GOGSFM's website to guarantee delivery of their full allotments.

He also urged all registered bakeries or selling points to contact the GOGSFM in case they did not receive in full their permitted share of flour from the distributors. The complaints would be received by telephone or online. Any distributor who fails to supply in full will be dealt with sternly, so that the commodity subsidized by the government reaches all sections of the people at affordable prices, he said.

The GOGSFM has approved contractors who are distributing flour to bakeries in all parts of the Kingdom. A contractor should supply data about him periodically to a committee set up by the Ministry of Commerce and Industry.

The committee determines the quantity of flour each distributing contractor is authorized to supply to the market. The committee also studies the population density and urban expansion to estimate the need of each town.

However, flour to the black market is supplied by the distribution contractors or bakers who receive more allocations than they actually need. Illegally operating bakers, who have been denied licenses by the municipality or Civil Defense, survive on the flour they buy from the black market, a source told a local newspaper.

Despite this, consumers think the GOGSFM's failure to control and monitor the distribution has led to the fake shortage.

They blame the current system that does not allow the GOGSFM to prevent distributors from creating such a problem every year.

A source from the GOGSFM, on the other hand, told Arab News that part of the problem was created by the media.

In a related development, informed sources have uncovered the exploitation of some bakeries and specialized factories that dry bread and sell it as livestock fodder, taking advantage of the high profits they can earn with the subsidized flour.

A local newspaper obtained information that indicated that a 45-kg sack of wheat flour is distributed to bakeries at SR 25, which produces between seven and nine bags of dried bread. One bag sells at SR 15 for livestock owners as feed.

It also has become clear that a pasta producing company in the Kingdom is greatly benefiting from subsidized flour. The sources pointed out that the factory buys 45-kg sacks of flour for SR 25, and sells pasta for about SR 700. In addition, it exports its products.

In December last year, the newspaper published a report that pointed out that a food company was producing instant noodles, a popular kind of pasta, for which it relies on flour.

It used to import these noodles to Saudi Arabia from Indonesia, but due to the considerable government subsidies for flour, as well as other subsidies for factories, the company decided to open a plant in Saudi Arabia. It now exports its products to Indonesia.

Saudi Arabia is expected to ban the export of subsidized goods, according to official sources who revealed there is a study under way to assess the value of the subsidy in each exported product that contains flour. A decision is expected in the coming months in this regard by the Saudi Higher Economic Council.

Flour receives more than 70 percent government support.

By JASSIM ABUZAID

 






  MENA News Headlines
Apr 24 2014Qatar- HH Sheikha Moza Meets Mayor of Kobe Visits RIKEN Research Institution ,Qatar News Agency
(MENAFN - Qatar News Agency) Kobe April 24 - Her Highness Sheikha Moza bint Nasser Chairperson of Qatar Foundation for Education Science and Community Development (QF) today held a meeting with the ...

Apr 24 2014Qatar- Sidra-BMC Event Boosts Biomedical Research Publishing ,Qatar News Agency
(MENAFN - Qatar News Agency) Doha April 24 - A symposium organised jointly by Sidra Medical Research Centre and BioMed Central (BMC) mulled trends in research and on open access publishing here ...

Apr 24 2014Qatar- Mannai Corp Q1 Net Profit up 73% to QR 150.1 Million ,Qatar News Agency
(MENAFN - Qatar News Agency) Doha April 24 - Qatar Exchange listed Mannai Corporation (QE: MCCS) net profit is up 73% to QR 150.1 Million for the first quarter of fiscal year 2014 ending March 31 ...

Apr 24 2014Bahraini firms forecasted to grow 10 pct ,MENAFN
(MENAFN) In a report based on a study of over 650 companies across GCC, Kuwait Financial Centre (Markaz) forecasts a growth of the Bahraini companies' earnings by 10 percent in 2014, Gulf Daily News ...

Apr 24 2014Israeli Army Storms Deir Samit Village West of Hebron ,Qatar News Agency
(MENAFN - Qatar News Agency) bron April 24 - Israeli army forces stormed at dawn Thursday Deir Samit village southwest of Hebron city in the West Bank. The Israeli forces conducted raid and search ...

Apr 24 2014Qatar Airways to add more seats on Doha-Vienna route ,MENAFN
(MENAFN) Qatar Airways plans to offer more 1.700 seats on its Doha-Vienna route beginning from September 2014, according to Gulf News. The company aims to expand the growing passenger demand from ...

Apr 24 2014Qatar- QFC Authority Five-a-Side Football Tournament Kicks Off ,Qatar News Agency
(MENAFN - Qatar News Agency) Doha April 24 - Qatar Financial Centre (QFC) Authority's first Five-a-side Football Tournament is displaying dribbling skills of executives from Doha's financial ...

Apr 24 2014Qatar Stock Exchange Down 0.05% ,Qatar News Agency
(MENAFN - Qatar News Agency) Doha April 24 - The Qatar Exchange ended in the red area when trading closed Thursday at 12954.93 points (0.05%) down 6.63 points from the previous closing of 12961.56 ...

Apr 24 2014Israeli Tanks Enter Gaza Border area ,Qatar News Agency
(MENAFN - Qatar News Agency) Gaza April 24 - Six Israeli military tanks on Thursday entered a border area in the southern Gaza Strip witnesses said. The tanks crossed into Gaza in an area called ...

Apr 24 2014President Salva Kiir Relieves his Chief of the General Staff ,Qatar News Agency
(MENAFN - Qatar News Agency) Juba April 24 -South Sudanese President Salva Kiir relieved Chief of the General Staff of south sudan army James Hoth Mai. This came in a presidential decree aired ...

Apr 24 2014Georgian Justice Minister Leaves Doha ,Qatar News Agency
(MENAFN - Qatar News Agency) Doha April 24 - HE Minister of Justice of Georgia Tia Tsulukiana left Doha on Thursday morning wrapping up a two-day official visit to the country. An agreement on ...

Apr 24 2014Omani non-oil exports to enter African markets ,MENAFN
(MENAFN) A senior official at the Oman Chamber of Commerce and Industry (OCCI) said that the Sultanate is seeking expansion in new African markets, in a time it is looking forward to reduce its ...

Apr 24 2014Afghan Guard Shoots Dead 3 Foreigners in Hospital ,Qatar News Agency
(MENAFN - Qatar News Agency) Kabul April 24 - Three foreigners including a doctor were shot dead and their colleague wounded when a guard of a private Cure Hospital opened fire on them in the ...

Apr 24 2014US Secretary of State Meets Egyptian Intelligence Chief ,Qatar News Agency
(MENAFN - Qatar News Agency) shington April 24 - US Secretary of State John Kerry has met with the Egyptian Intelligence Chief Major General Mohammed Ahmed Fareed al-Tohami who is currently ...

Apr 24 2014Uruguay Public Health Minister Meets HE Qatari Ambassador ,Qatar News Agency
(MENAFN - Qatar News Agency) Montevideo April 24 -Minister of Public Health in Uruguay Maria Susana Mu?iz met here on Thursday with HE qatari ambassador to the republic of Uruguay mohamed hassan ...

Apr 24 2014Egypt's Interim President Receives Phone Call from South African President ,Qatar News Agency
(MENAFN - Qatar News Agency) Cairo April 24 - Egypt's Interim President Adly Mansour has received a telephone call from President of the Republic of South Africa Jacob Zuma in which they discussed ...

Apr 24 2014Sharjah Ladies Club organizes "Sharjah Ladies run" at the University City ,MENAFN Press
(MENAFN Press) Sharjah Ladies Club gears up to launch "Sharjah Ladies run" at the Sharjah University City. With over 250 participants, the activity aims to encourage women and enable them to ...

Apr 24 2014King bids to reassure Saudis as MERS deaths hit 85 ,AFP
(MENAFN - AFP) King Abdullah was in the Saudi commercial hub of Jeddah on Thursday in a bid to reassure a worried public as the death toll from the MERS virus hit 85. The Red Sea city has seen a ...

Apr 24 2014Egyptian Premier Off to Chad ,Qatar News Agency
(MENAFN - Qatar News Agency) Cairo April 24 - Egyptian Prime Minister Ibrahim Mehlib left cairo on Thursday for Chad the first leg of a three-day two-state trip that will also take him to Tanzania ...

Apr 24 2014Alcatel-Lucent Enterprise to address the network application challenge with new access switch, added analytics and SDN capabilities ,MENAFN Press
(MENAFN Press) The Enterprise division of Alcatel-Lucent recently unveiled new technology to address the challenges created by pervasive mobility and the explosion of new applications being ...

more...


 
Click to Apply






Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country
Marketwatch News
UPI News
Comtex News

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Investment Game
Economic Calendar
Financial Glossary

My MENAFN
Portfolio Tracker

Voting

Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help