RIYADH, 30 December 2002 — The General Organization for Grain Silos and Flour Mills has refused to accept surplus wheat produced by Saudi farmers because output far exceeded their permitted production quotas.

Farmers wanted the excess production of wheat and barley to be absorbed citing reasons of agricultural economy. They contended that they have no warehousing facility to store the excess quantities of grain which cost them more than SR400 million and and a large quantity of irrigation water to produce.

Sources at the Ministry of Agriculture said the excess quantities would be returned to the producers. They said farmers had brought an estimated 600,000 tons of wheat to the silos without official documents.

The farmers affected by the decision of the grain silos organization are from Jowf, Hail, Tabuk, Riyadh and Aflaj.

The organization clarified that any surplus beyond the total annual production quantity approved by the Ministry of Agriculture, which is 1.8 million tons, will be rejected as the financial approval from the Ministry of Finance and National Economy covers only the quantity fixed by the Ministry of Agriculture.

Last year, officials warned the farmers who overproduced grains that the excess quantity would be returned. However, the affected farmers proposed to the organization to accept the surplus quantities which could be deducted from their quota next year so that the wheat would not be damaged. The organization did not accept this proposal and returned the quantities without suggesting any other solutions.

Farmers attributed the surplus production to favorable weather, per-hectare yield and the delayed announcement of quotas for the season.