Saudi Arabia does not produce rice, it relies on imports. Raoul Becker, manager of the "Moulin de Hurtigheim" flour mill, checks the grinding of bread wheat at his mill in Hurtigheim near Strasbourg, France, July 26, 2016. The privatisation had attracted initial interest from some of the world's largest agribusiness companies, including Archer Daniels Midland Co  and Bunge Ltd, and was seen as a litmus test for other large state asset sales to follow. Quickly uncover hidden opportunities with comprehensive data and content. But after the privatisation of the flour mills they will be able to buy wheat from global markets directly as well as from SAGO, it said in response to a Reuters question. In South Africa, wheat imports rose by 23 percent during 2019/20. Saudi Arabia Wheat Imports by Year. WHEAT- SAGO is the exclusive importer of subsidized food-grade wheat in Saudi Arabia. But after the privatization of the flour mills they will be able to buy wheat from global markets directly as well as from SAGO, it said in response to a Reuters question. Thursday Outlook: Gold rise to an over one-week high; oil prices drop, End of gold bull run? “SAGO’s original plan was to keep the wheat importation with them … their concern being having any shortages in the flour and bread markets,” Hesham Hassanein, a Cairo-based regional grains consultant, said. The major food suppliers of wheat are the USA, Germany, Lithuania, and Poland. We encountered an issue signing you up. In order to protect local food processors and production from competitively priced imports, Saudi Arabia ties import duties to the level of local production of similar products. This website uses cookies to improve your online experience. In 2018, imports of wheat in Saudi Arabia had a price of 243 U.S. dollars per metric ton, compared to 303 U.S. dollars per metric tons in 2013. © 2020 Financial Post, a division of Postmedia Network Inc. All rights reserved. Wheat imports Coarse grain imports Wheat exports Coarse grain exports Trade balance 10 5 0 5 10 15 es ... China 521 1 626 212% Saudi Arabia 1 507 1 237-18% Algeria 1 665 1 001-40%-12% Utd. SAGO, one of the world’s largest grain buyers, has until now controlled all the country’s wheat purchases. In Saudi Arabia, Refinitiv trade flow models showed that wheat imports jumped by 277 percent from August to September. There was an error, please provide a valid email address. There are only two kinds of tariffs levied on goods imported to the Kingdom of Saudi Arabia, which will be referred to as the KSA in the following context. DUBAI - Saudi Arabia's state grain buyer SAGO said on Monday that companies that buy its flour mills will be able to import wheat directly from global markets in a further liberalisation of the country's grains sector. SAGO relaxed its bug-damage specifications for wheat … In second place for higher purchases was the ships and boats category thanks to its 26.6% gain. Saudi Arabia is selling its entire flour milling business, a long-awaited privatization that marks one of the first sales of the country’s state-owned assets, part of broader plans to overhaul the economy. Iron or steel posted the fastest-growing increase in value among the top 10 import categories, up by 32.1% from 2018 to 2019. Saudi Arabia liberalizes wheat imports for flour mills, tap here to see other videos from our team. Saudi Arabia is selling its entire flour milling business, a long-awaited privatisation that marks one of the first sales of the country's state-owned assets, part of broader plans to overhaul the economy . "The wheat purchase price is a very big factor in the profit margins of flour mills," a German trader said. The organization imports mainly hard wheat directly through public tenders open to registered international exporters, the FAS said. In a top of most imported cereals rice places first, followed by barley, corn, and wheat. The oilfields remain, but the last wheat farms have just disappeared to save the aquifers supplying them. Further losses expected as vaccine hopes rise, Six key credit themes for global asset management sector in 2021, Wednesday Outlook: Dollar hovers near 2-1/2 year low; gold prices dip, U.S. toughens visa rules for Chinese Communist Party members-State Department, Walmart to spend more than $700mln on new round of employee bonuses, Divers discover Nazi WW2 enigma machine in Baltic Sea, Delta Air expects daily cash burn of up to $14mln in fourth quarter, U.S.'s Khalilzad to Turkey, Qatar for talks on Afghanistan -State Dept. “SAGO feels more comfortable with the expertise of the private consortiums who are buying the mills but I’m sure there is a safety net of some large strategic reserves owned and operated by SAGO,” he said. Saudi Arabia’s exceptions include 758 products that may be imported duty-free, including aircraft and most livestock. The main reason for the low and irregular U.S. wheat exports to Saudi Arabia is high U.S. wheat export prices compared to EU wheat prices. They were placed on your computer when you launched this website. These are customs duty and value-added tax, which are charged on every import. Email us at editorial.zawya@refinitiv.com, or send us your company press releases to pressrelease.zawya@refinitiv.com. A welcome email is on its way. In second place were African importers at 22.2% while 20.9% of worldwide wheat imports … 365 Bloor Street East, Toronto, Ontario, M4W 3L4. Saudi Arabia partially rescinded a virtual ban on domestic wheat production and is projected to produce 500,000 MT in MY 2019/20. Wheat imports in MY2016/17 are projected to rebound by 17 percent, to 3.5 MMT to meet consumption needs and maintain reasonable strategic wheat reserves levels. Wheat imports are projected to fall by 17 percent to 2.86 MMT in MY 2018/19. In-depth reporting on the innovation economy from The Logic, brought to you in partnership with the Financial Post. A very small number of Saudi farmers, however, are expected to continue their wheat production to supply local artisanal mills. As a rule, a maximum import tariff rate of 40 percent ad-valorem is applied when local production of a food or agricultural product exceeds a self-sufficiency level. "This freedom would be important in making the mills attractive to purchasers.".