Muscat - Food companies Oman Flour Mills (OFM) and A'Saffa Foods have received the first instalment of feed subsidy from the government.
In its filing to the Muscat Securities Market (MSM) on Wednesday, Oman Flour Mills said that it received RO5.56mn, being 80 per cent of the feed subsidy claim for the period January 2011 to June 2012.
"We believe the balance payment will be received upon final approval of the methodology for computation of the subsidy," said Oman Flour Mills.
In its June 2012 financial statement, OFM accounted for the amount received and the balance amount receivable.
A'Saffa Foods said that it has received the first instalment of RO1.56mn, being 80 per cent of the subsidy amount up to June 30, 2012.
In 2011, local feed producers complained that their profit margins were severely under pressure due to rising raw material costs. Last year, considering the volatility in raw-material prices the government announced feed subsidy to producers from January 2011.
Following the subsidy announcements, the shares of animal-feed companies surged on the MSM on Wednesday. A'Saffa's stock jumped 5.56 per cent and Oman Flour Mills rose 3.16 per cent. Shares of Dhofar Cattle Feed and Salalah Mills gained 4.58 per cent and 2.5 per cent, respectively.
© Muscat Daily 2013
