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FINANCIAL NEWS
Saudi to increase wheat reserves
15 Jun 2011
(MENAFN) Saudi’s Minister of Agriculture, Fahd Balghunaim, said that by the year 2014, the Kingdom would double its wheat reserves to one year’s consumption, reported Arab News.
Balghunaim added that in 2011, Saudi would expect around two million tons of wheat imports; moreover, in order to protect itself from raising global food prices and to support its expanding population, the Kingdom would increase its reserves of other commodities like rice, sugar and oils.
He also said that the country’s policy was to always have six months of supply in reserves at any moment, adding that two years ago, Saudi started importing wheat and by the year 2016 it would completely depend on wheat imports.
It is worth noting that in 2010, the Kingdom established a company with a capital of USD800 million to invest in farmland abroad, focusing on wheat, rice, sugar and soybeans.
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