JEDDAH — As consumers reel from rising inflation-related prices, the Kingdom’s bakeries are continuing to feel the pinch in the flour shortage. Twenty bakeries were reported closed in Makkah.
Abdullah Al-Barak, head of the Grain Silos and Flour Mills Organization (GSFMO) in Madinah, said that the problem would be solved in the 24 hours when 26,000 bags of flour would be distributed to Madinah bakeries.
“Madinah silos will start operating within two months,” said Al-Barak. “This will help increase production to 80,000 bags per month, which is twice the estimated quantity. That would decrease the pressure on Jeddah and Qassim silos, which are our main providers. It will also provide surplus to avoid such crises in the future.”
Khaled Gamamji, head of the branch of the Ministry of Commerce in Madinah, said that a number of meetings have been set up for buyers and suppliers in Madinah to find a way out of this crisis. They all ensured that there is a delay in providing them with the flour allocated for them, while the GSFMO denied any missives from their side.
A number of supermarkets in Makkah have resorted to rationing in an attempt to distribute bread among their regular customers. This has angered some customers, who are being told at these bakeries that they can only buy SR1 worth of bread.
In Jeddah, a number of restaurants are suffering shortages of bread due to the current crisis. Bakeries that supply restaurants are unable to fill their orders.
New regulations have been set by the GSFMO and the Ministry of Commerce to deal with the shortage that involves bakeries buying directly from the GSFMO.
Bakeries must fill out two forms: one with personal information and the other detailing each bakery and its respective needs. Other administrative procedures have been implemented.
The aim of the procedures is to diminish the black market. Many purveyors are reportedly acquiring flour and then re-selling it at a steep markup to gouge bakeries. Bakery owners will, for the time being, need to avoid using purveyors and other middlemen and deal directly with the suppliers.
In case the bakery owner is in need of an intermediate agent to deal with GSFMO, he has to mention the agent’s name, address and contact number and to specify the agent’s selling price. Delivery method is left to the bakery owner to determine. In case he has the warehouse to store the whole quantity he can have it one shot, but if he doesn’t he can have them on a daily basis.
