JEDDAH, 17 July — The government will pay out within two weeks SR1.237 billion to clear dues to wheat and barely farmers, according to a directive issued by Custodian of the Two Holy Mosques King Fahd.

“Payment will start within two weeks,” Agriculture and Water Minister Dr. Abdullah Muammar said, adding that small farmers will get their dues first.

The minister said the schedules for distributing the payments will be announced by the General Organization for Grain Silos and Flour Mills.

He thanked King Fahd for issuing the payment order and said it would boost the agricultural sector.

Some 5,000 farmers are to benefit by the governement move.

The amount represents part of the dues of wheat and barley farmers for the 1999-2000 agricultural season.

An official source at the Saudi Arabian Monetary Agency told Arab News that farmers would be able to receive the money through the speed cash system or checks.

The payout is expected to boost economic activities in the country, especially construction and trade.

“ Payment could also be made in cash or by transferring the amount to the beneficiary’s account,” the source explained.

The beneficiaries will be categorized into three groups.

Those who supplied yields up to 100 tons will be given full payment of their dues; up to 200 tons between 65 and 75 percent; and over 200 tons by 35 percent.

Last year the government paid SR1.7 billion in dues to the farmers for the 1998-99 season, benefiting 11,000 farmers.

The government is expected to pay the remaining dues next year.

The new payment, according to farmers in Hail, Tabuk, Qassim and Jouf, is significant as they come ahead of the new agricultural season.

Farmers need money to carry out new projects and purchase agricultural equipment.

Saudi Arabia produces 1.2 million tons of wheat and 200,000-300,000 tons of barley annually.

The government purchases wheat and barley from farmers as part of its support for agriculture.

The Agricultural Bank provided loans worth SR1.1 billion to 6,147 farmers in 2000 to purchase agricultural requirements.

Saudi Arabia started issuing government bonds in 1995 to pay dues worth SR30 billion, especially to contractors (SR5 billion).

These bonds created new liquidity and helped the government reschedule its dues to future dates when it would have enough revenues.