First Mills says subsidy policy remains intact, no pricing change

Logo of First Milling Co.

First Milling Co. (First Mills) received no official notice from the General Food Security Authority (GFSA) on a pricing policy change, therefore the current subsidy policy remains intact until today, July 13.

In a Tadawul statement, the company reaffirmed its commitment to the objectives of National Food Security Policy by providing high-quality products and maintaining sufficient production capacity.

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It also hailed the GFSA’s continued support, which helps serve citizens and ensure food security in the Kingdom.

On Nov. 30, 2020, First Mills had signed a wheat supply deal with the authority, formerly known as the Saudi Grains Association, which expired on July 12, 2025.

According to Argaam’s data and the company’s prospectus, the deal allows First Mills to buy wheat from the authority at a subsidized rate.

Under the agreement, the company earns a fixed net revenue of SAR 320 per ton of regulated flour, based on a SAR 180 wheat purchase price and a SAR 500 flour selling price. This margin remained unchanged through July 12, 2025.