Saudi's SAGO to reimburse local farmers for any wheat price increase over current season

(Reuters) - Saudi Arabia’s state grains buyer (SAGO) will reimburse local farmers for any wheat price increase if it had awarded international tenders at a price exceeding the approved one, SAGO said on its website on Sunday.

The decision will cover those local farmers who supplied wheat during this current agricultural season.

The decision came after SAGO’s board of directors agreed to review the purchase price of wheat from local farmers for the current procurement season that ends in October, SAGO said.

Last week, the grains buyer bought 495,000 tonnes of wheat in an international purchasing tender for shipment from November 2022 to January 2023, with the average price at $441.93 per tonne.

SAGO’s board of directors had previously approved two increases in the local wheat procurement price during the current agricultural season, in line with the rise in international prices, the organisation added.

In March, SAGO approved an increase in the local wheat procurement price to 1,700 riyals ($453.14) per tonne for the current season.

($1=3.7516 riyals)

Reporting by Omar Fahmy, Writing by Nayera Abdallah, Editing by Louise Heavens