JEDDAH/MADINAH -- Agriculture Minister Dr. Fahd Balghunaim yesterday announced that four new flour mills would supply an additional 16 million bags of flour weighing 45 kg each annually, bringing the total supply to 70 million bags.
The minister's statement came as flour shortages continued to plague bakeries across the country, increasing the prices of bread and forcing some bakeries to close.
Balghunaim said two new flour mills in Madinah would supply 24,000 bags of flour daily starting early next month. "They will meet the increasing requirements in Makkah, Madinah, Hail and surrounding villages," he added.
The minister was speaking to reporters after a meeting of the board of directors of the General Organization for Grain Silos and Flour mills (GOGSF) in Riyadh.
He said two new flour mills in Al-Jouf and Riyadh would supply 24,000 bags of flour daily in August. "Total output of the four mills will reach 48,000 bags daily and 16 million bags annually," he added.
Balghunaim said his ministry was now coordinating with the Makkah governorate in order to establish new silos and flour mills in the region with a daily capacity of 600 tons of wheat. "New mills will also be set up in the southern region," he added.
The flour crisis hit the Kingdom for the first time last week with packets of the popular shami and somouli breads disappearing from many bakeries, groceries and supermarkets. The short supply led to price increases across the country.
The Ministry of Commerce and Industry said yesterday that it had intensified monitoring of market to stop any foul play by traders who want to make quick money by exploiting the crisis.
Saleh Al-Khalil, director of supply at the ministry, said his officials, along with GOGSF officials, would tour the Kingdom to ensure an adequate supply of flour. He said the ministry would consider the requirements of every bakery.
Meanwhile, a reliable source at GOGSF said the new flour mill in Madinah could not operate because of power disruption. Hassan Al-Amoudi, head of Saudi Electric Company in Madinah, denied the allegation, saying the mill had been provided with a power connection.
Authorized suppliers in Jeddah and Qassim refused to deliver allocated quantities of flour to Madinah as a result of flour shortages. Khaled Gamamji, head of the branch of the Ministry of Commerce in Madinah, said his organization had contacted GOGSF to ensure an adequate flour supply to the region.
An average bakery needs about 70 to 80 bags of flour every day but during the crisis it is receiving only 20 bags, Gamamji said. He added that his officials had not discovered any hidden flour bags in warehouses.
"Those who hoard flour to raise prices will face harsh punishment," he warned.
Some bakers have been buying flour from black markets. "At the beginning of the crisis, we bought flour from the black market to meet our needs, but that was very expensive and led to heavy losses," said Salem Al-Widaey, a bakery worker. "The losses made us think about closing the bakery," he added.
By Galal Fakkar & Muhammad Abdullah
© Arab News 2008
