Saudi barley importers punished for price hike
The Saudia Arabian government is to take disciplinary action against 10 barley importing companies found to be selling their barley at higher prices than was set out by the Ministry of Commerce and Industry.
The Ministry of Commerce had been receiving complaints from farmers about unreasonable rises in the price of cattle feed. It ordered all companies dealing with cattle feed not to raise their prices without justification and to clearly write the prices on each bag. Its officials have been making regular field inspections to monitor the situation.
The punishment for each offending company includes:
- a SR50,000 (€9,337) fine
- publicising their punishment on a half page advertisement in three local newspapers at their own expense, with at least one of the publications serving the region where the violation was committed
- be forced to remain closed for 15 days.
The companies are:
Jeddah based –
- Bahasan Commercial Establishment,
- Rolaco Industries and Trade Co.,
- Al-Mustanir Commercial Establishment,
- Al-Muttahedah Cattlefeed Co.,
- Saeed Ali Ghadran and Sons Co. Ltd.,
- Al-Nimlah and Partners Co.
- Abdullah Muhammad Salem Bahakeem.
Dammam-based companies are:
- Muhammad and Abdul Rahman Al-Saad Al-Bawardi Co.,
- Al-Muttahedah Cattlefeed Co.
- Abdul Aziz and Saad Al-Muejil Cattle Feed Factory.
The companies will also be barred from importing barley over the next six months. The ministry will not grant subsidies to the shipments they imported before the date of their violations.
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