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Cost of latest purchase of wheat sees increase of 35%

(File photo: Jordan News)
AMMAN — The Kingdom paid 35 percent more per tonne of wheat compared to the average cost of purchases made at the end of last year, according to local media outlets.اضافة اعلان

The Ministry of Trade, Industry, and Supply purchased 120,000 tonnes of wheat at $500 per tonne compared to $370 per tonne last year. All the shipments arrived at the Port of Aqaba.

According to data, this latest shipment represents 11 percent of the total wheat stocks that have been contracted, in addition to what is already the country’s silos.

The country’s current wheat stocks, in addition to what is yet to be purchased, will sustain the country’s monthly consumption of 90,000 for 12 months, according to ministry data.

Additionally, the price of barley imports has increased by 26 percent compared to the end of last year, bringing the price of 1 tonne to $433 from $344.

The most recent purchase of 120,000 tonnes of barley constitutes 15 percent of the total stocks of barley owned by the Kingdom.

The ministry’s data show that total quantities of barley in silos and those on the way to the Kingdom amount to 800,000 tonnes, covering the Kingdom’s consumption for a period of up to 10 months, with monthly consumption currently standing at 80,000 tonnes.

In this year’s state budget, the government had allocated JD60 million for wheat and feed subsidies, an increase of JD5 million over the amount allocated in last year’s budget.

The ministry recently launched two separate tenders for the purchase of 240,000 tonnes of wheat and barley in order to increase the Kingdom’s stocks.

The construction of grain silos has contributed significantly to increasing the Kingdom’s storage capacity of both wheat and barley.

The government buys wheat and sells it to mills in order to extract the standardized flour at a rate of 78 percent, and the percentage of bran extraction is 22 percent, while the selling price of the bran has been set at JD140 per tonne, excluding sales tax.

The Kingdom’s monthly consumption of standardized flour for bread production is about 52,000 tonnes, or about 1,750 tonnes per day. The ministry also imports barley and sells it to sheep breeders at subsidized prices.

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Jordan News