Farmers are soon to be paid SR1.5 billion by the government in subsidies for wheat and barley. I wish I were a farmer to get my share of this money. These are lucky people who grow products confident the proceeds are guaranteed since the buyer is already there.
I must admit I am not well informed on the agriculture sector but at least I know something about wheat production in the country where the state is committed to buying the wheat from farmers. The state also subsidizes date farmers but I am not aware whether it also supports other producers. Regardless of the size of these subsidies, SR1.5 billion is quite a figure to consider.
This is especially true at a time when there is a pressing need for more hospitals, medicines and medical equipment, schools, colleges, roads and other services as well as the need for reviewing salary structure of employees.
Agriculture is an economic activity like any other where there is a producer and consumer. If farmers are producing exclusively for the government, then this is an irrelevant logic in this age of globalization and it is unrealistic. Farmers are supposed to produce for consumers.
Grain silos buy wheat from farmers and sell the flour to the consumer to make bread and pastries. Why then should the state own these silos, buy farmers’ produce and sell the product to consumer?
Instead it should apply the market doctrine of supply and demand. If the price of locally produced wheat or barley is high, then it should be imported from outside because we need to conserve the huge quantities of water used in irrigating these products. This would have saved us most of the SR1.5 billion and that could have remained in the state coffer for use in more vital areas. If left to market demand, the agriculture sector would become more efficient and effective and more responsive to consumer demands.
28 July 2002
