DOHA: Wheat has become cheaper this year thanks to favourable weather conditions in major producing countries, and so has been the case with Australian sheep.
The falling prices of wheat flour and Australian sheep have helped the Qatari government save about QR38.3m ($10.5m) in the first six months of this year in subsidies provided for both products of mass consumption.
The government provides wheat flour to bakeries at subsidised rates so they could sell the traditional Arabic bread popularly known as ‘khubs’ at a fixed rate for the benefit of consumers.
‘Khubs’ is known as the staple food of the common man and popular with the Qatari and expat communities.
Their prices have remained low and fixed in the local market for years on end despite wheat prices fluctuating in the global markets. Qatar is a major importer of wheat and other food products.
In the first half of this year, the government subsidised wheat flour by QR55.2m ($15.15m), down QR3.7m (almost $1m) over the first half of 2012.
According to local Arabic daily Al Arab, details of the subsidy for wheat flour in H1 of 2013 were given by Zad Holding, the company that supplies wheat flour to bakeries. World wheat production has improved in major producing countries, Russia being the largest exporter, in H1 of this year, Al Arab said.
Bad weather led to a fall in the global production of wheat in 2012 and escalating demand as a result of shortages worldwide triggered an unprecedented price rise.
Similarly, the Qatari government subsidises Australian mutton which is sold at QR14.5 a kg by Widam, formerly Mawashi or Qatar Meat and Livestock Company. Both Widam and Zad are locally listed entities.
The state subsidy for the Australian mutton is aimed to make it affordable for the common man as other meat prices have multiplied many times over the past decade. This is especially true of Syrian sheep, Indian mutton (of goat) and local and GCC livestock.
Figures suggest that the subsidy for the Australian sheep’s meat makes a larger dent in the government’s coffers, although the amount fell considerably this year due to declining prices of livestock in Australia.
Subsidy provided in H1 of 2013 to Widam for the Australian mutton (so that the company being the sole supplier of Australian mutton, can maintain the fixed retail price of QR14.5 a kg) amounted to QR171.5m ($47m). Subsidy for the Australian mutton was higher, at QR206.1m or $56.6m, in the first half of 2012, according to figures released by Widam, Al Arab said.
The Peninsula
