Modern Mills says subsidy, pricing policies unchanged

Logo of Modern Mills Co.

Modern Mills for Food Products Co. (Modern Mills) announced that its wheat supply agreement with the General Food Security Authority (GSFMO), signed on Nov. 30, 2020, expired on July 12, 2025.

In a Tadawul filing, the company confirmed it has not received any official notice from GSFMO regarding changes to the current subsidized pricing policy, indicating that the government subsidy remains in effect without modification.

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Modern Mills reaffirmed its commitment to supporting Saudi Arabia’s food security goals and pledged to update customers and shareholders on any developments from the authority.

The company signed an agreement with GSFMO to supply both subsidized and non-subsidized wheat. The authority imports wheat for local production of subsidized flour, according to Argaam’s data.

The agreement pegs the subsidized wheat purchase price at SAR 180 per metric ton, a level set by the Saudi government since 2017.

Modern Mills also has the option to directly import wheat or purchase from the open market, subject to GSFMO’s approval.

On Nov. 30, 2020, the agreement was extended to align with the company’s milling license, which is valid for 25 calendar years starting from the completion of its privatization on Dec. 31, 2020.