Saudi grain authority to be privatized within a year

The Saudi Grain Organization (SAGO) will be privatized over a 12-month period, but studies are still ongoing to determine the divisions that will be sold, the kingdom’s minister of water and agriculture, Abdulrahman Al Fadhli was quoted as saying by the state-run news agency SPA.

SAGO has also invested SAR 332 million to expand silos in Jeddah to raise storage capacity to 140,000 tons and will undertake to expand others in the Eastern Province and Al-Ahsaa, Al Fadhli added.

Saudi Arabia’s grain subsidies stand at nearly SAR 3 billion, the minister said adding that the grain authority is aiming to enhance storage and production capacity at its 14 branches across the kingdom.

SAGO is in charge of the kingdom's extensive wheat-buying program as Saudi Arabia has become a major importer of wheat after it abandoned plans for self-sufficiency in growing wheat in 2008.

The move to privatize SAGO began with the Saudi cabinet’s decision to establish four joint-stock companies that will operate its flour mills, Argaam earlier reported. They will be monitored by the state-owned Public Investment Fund (PIF) in coordination with SAGO.

Talks are underway with PIF to determine the final timeframe for the privatization process.