PARIS: The G20 Ministers of Agriculture have lauded the King's Agricultural Investment Program which encourages the private sector in the Kingdom to invest in countries that can contribute to the nation's food security program, said Dr. Fahd Balghunaim, Minister of Agriculture. The minister is representing the Kingdom at the gathering. Balghunaim said the Kingdom is planning to import sheep from South America and China prior to Haj to ensure adequate supply and therefore low prices of these sacrificial animals. He said the G20 meeting of the ministers of agriculture is basically to ensure stable food prices worldwide. Balghunaim said the ministers cannot stop speculation on world markets because this falls within the jurisdiction of the G20 finance ministers and central bankers. However, the agriculture ministers have already voiced their concern over speculators because they generate huge profits that endanger the lives of more than 1.1 billion consumers in the world. These people go to bed hungry every night, said Balghunaim. The ministers have suggested a work plan consisting of 52 points to curb speculation on foodstuffs. The proposals will be submitted to the G20 leaders at their upcoming summit. He hoped that the leaders adopt a mechanism that would end the operations of these speculators. He said the Kingdom will not be severely affected by these speculators because of its healthy financial state, but it will be affected by higher-than-normal food prices. Balghunaim added that the ministry has resolved its conflicting stance over certain aspects of the food security plan. He said the Council of Ministers' decision in 2008 had resolved the issue in favor of water security above all other measures. He said this reflects the focus of the country on scarce water resources. While food shortages can be resolved by importing more, very little can be done if there is no water. He said the G20 Ministers of Agriculture have recommended the gathering to adopt the King's proposal to invest in countries with rich agricultural land and human resources. He said the Kingdom is substituting wheat shortages by buying directly on the international market. This policy is to gradually reduce reliance on local produce at a 12.5 percent yearly rate. In 2016, the government represented by the General Grain Soils and Flour Mills Organization will completely stop all wheat purchases from local farmers. This is part of the water security strategy because wheat needs plenty of water to grow. About the political turmoil in countries like Egypt, Syria and other African countries, which are thought to be the Kingdom's hubs for agricultural investments, he said, “It should be understood that there are always investment risks whether they are caused by political instability or natural disasters. This is why the Kingdom has agricultural investments in many countries. This policy minimizes investment risks. Moreover, the private sector invests in the field while the government's role is limited to encourage and facilitate investment operations. “Owing to this we advise local investors to invest in Africa, South America, Eastern Europe and Asia.”
