MUSCAT, NOV 23
Oman Flour Mills Company announced on Wednesday that it has received a letter from the government pledging financial support for four basic raw material inputs that go into the production of concentrated animal feed industry.
The subsidy will be valid for six months, starting from last July, it said adding that it is in line with the government's keenness to stabilize the prices of concentrated animal feed in local markets.
Dhofar Food and Investment Company also disclosed in a similar filing to the Capital Market Authority (CMA) that it has received a letter from the Directorate General of Food Security at the Ministry of Agriculture, Fisheries and Water Resources approving subsidy support towards animal feed.
The subsidy, also effective for six months starting from July 1, will cover one third of the difference between the base price and the ceiling price – a gesture aimed at reducing the company's losses in the production of concentrated feed.
According to economic experts, rising raw material costs linked to geopolitical influences as well as lingering impacts from the pandemic are responsible to the increased cost of animal feed in the domestic market.