GFSA approves flour exports to global markets

Logo of General Food Security Authority (GFSA)

The General Food Security Authority’s (GFSA) board approved the export of flour to global markets by licensed milling companies, Governor Ahmed Al-Fares said in a statement.

The decision aligns with the GFSA’s regulatory role overseeing flour mills and is in line with Saudi Vision 2030, which supports national industries and promotes competition based on product quality, the authority said in a statement.

The approval is subject to a mechanism that ensures the export of only surplus production capacity without compromising domestic market needs.

Additionally, exporters are required to fully reimburse the government for wheat subsidies on the exported quantities. According to data available on Argaam, First Milling Co. (First Mills) received, on Nov. 21, the GFSA’s approval to export flour to regional and international markets.

According to GFSA, the licensed flour producers are First Mills, Arabian Mills for Food Products Co. (Arabian Mills),Modern Mills for Food Products Co., and Fourth Milling Co. (MC4).

** 2021 data

*** 2022 data, the production capacity includes flour and wheat

The Authority committed to maintaining an amount of SAR 320 as a difference between the unified selling price of wheat (which is SAR 180 per ton) and the company’s selling price of flour products to beneficiaries in bulk, weighing 1,000 kg or in packages weighing 45 kg (which is SAR 500 per ton), for a period ending on July 12, 2025.

There are three possibilities after the end of the commitment period for the price difference. There could be no change in the current subsidy system. A second option is a gradual lift of subsidy; whereas the authority maintains its commitment to the price difference between the unified purchase cost of wheat by all companies operating in the field of flour milling, while the price of flour sold to beneficiaries will be only for flour used in bread production.

Otherwise, the government will lift the subsidy completely on all types of wheat and flour products in the market.