Farmers worried by dry spell in Central Region
Arab News 22 January 1997

The dry spell in Riyadh this winter may affect farmers who will be forced to keep their irrigation pumpsets running and their product cost zooming.

This is the view of Turki Faisal Al Rasheed, president of Golden Grass, Inc., who said the absence of winter showers in the Central Province is a matter of concern for Saudi Farmers. Many wheat farms and greenhouses are located in this region.

"At our Al-Haya Farm at Hail, the consumption of diesel oil is at the rate of 2,000 liters per hour. Considering the fact that there was a hike in the price of diesel oil last year year, from eight halalas to 37 halalas per liter, you can imagine the impact that this dry spell will be having on us," Al-Rasheed said. Unlike last year, when Riyadh had abundant rainfall during winter, the current season has been marked by almost a dry spell so far. There was a mild drizzle early this week which caused a drop in the temperature. But it brought no respite to the farmers who must continue to operate their pumpsets. The burden of a rise in the production cost will eventually have to be shouldered by the consumer.

Referring to the impact of this year's budget on the agricultural sector, Al Rasheed said it has had to positive impact in reviving many farms. The farm sector, he pointed out, had suddenly become liquid with the injection of SR 12 billion in back payments by the government.

According to him, the government has fixed subsidy at the rate of SR 1,500 per ton for wheat and SR 1,000 per ton for barley.

This has benefited both the farmers and the consumers, since it stabilizes the commodity prices and allows them profit margin. With wheat production standing at 1.6 million tons annually, the Kingdom has become self-sufficient in this area.

Figures released by The Saudi British Bank show that barley production is being constantly encouraged. "As a Saudi crop, Barley barely existed in 1984, with production at 7,000 metric tons, with the introduction of a guaranteed price it had reach 1.8 million metric tons by 1994 and an anticipated two million tons in 1995."