Bahrain Flour Mills Chairman Addresses Flour Price Controversy
In an exclusive interview with The Daily Tribune, Mr. Basim Mohamed Al Saie, Chairman of Bahrain Flour Mills Company, shed light on the recent controversy surrounding the increase in flour prices. As parliamentarians gear up for a special session to discuss the matter, Mr. Al Saie provided insights into the reasons behind the price adjustments and dispelled misinformation circulating on social media and certain news outlets.
Mr. Al Saie refuted allegations that the prices of all flour types have increased, emphasizing that such claims are inaccurate and misrepresented. He stressed the importance of accurate reporting and urged media outlets, especially those on social media, to present all facts comprehensively instead of sensationalizing the issue. He clarified that the recent price adjustment only affects subsidized uncontrolled markets, such as restaurants, hotels, and commercial food establishments, while traditional bakeries and food outlets remain unaffected.
The Bahrain Flour Mills Company, located near the port in Mina Salman, faces operational challenges due to the port’s shallow waters, limiting large vessels from docking. Despite these challenges, the company has undergone modernization efforts over the years to meet market demands. The recent expansion, completed in March this year, will enable the company to enhance its capacity and fulfill the growing demand for flour in the market.
The modernization efforts, costing around six million dinars, have financial implications for the company, including depreciation costs that impact its bottom line. Mr. Al Saie emphasized the importance of economic sustainability and highlighted the company’s commitment to local employee welfare. With 83% of the company’s workforce being Bahrainis, the company invests in upskilling and training to groom the next generation of leaders and provide good salaries and career development opportunities.
The government subsidizes a significant portion of flour prices for traditional bakeries, while uncontrolled markets receive partial subsidies. The recent price increase aligns with regional standards, with Bahrain’s prices still lower than other markets in the region. Mr. Al Saie emphasized the need to prevent abuse of subsidized flour, including repackaging and selling it at higher prices, by implementing a new system requiring online purchases to track usage and reduce misuse.
Looking ahead, Bahrain Flour Mills plans to invest in a new mill with an estimated investment of 50 million dinars. The new facility will enhance capacity, storage, and product diversification, supporting local industries like poultry farms. Mr. Al Saie emphasized the company’s commitment to quality, financial sustainability, and employee and customer well-being while serving the Kingdom’s food security needs. He highlighted efforts to improve baking processes and work with traditional bakeries to enhance their techniques and ensure product quality.
