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Saudi Arabia to double its wheat reserves

13 Jan

Saudi Arabia hopes to double its reserves of wheat in order to meet the rise in global food prices and satisfy the needs of a rapidly growing population base.

The official figures published at a conference in Riyadh on Sunday that the kingdom will need some 3.3 million tons of wheat a year by 2015, up from two million tons imported last year.

Walid Khuraiji Chairman of Grain Silos and Flour Mills said on Sunday said that Saudi Arabia plans to increase its wheat reserves to cover the needs of the year instead of six months.

He told reporters that the Kingdom will increase the storage capacity of 550 thousand tons of wheat in four cities, in addition to the current capacity which amounts to 2.52 million tons in order to achieve that goal.

Similar reactions like this will put further demand pull pressure on agricultural prices and together with supply shocks caused by adverse weather will cause severe spikes, hurting the poorest nations even more.

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