Saudi Arabia will import about 2 million tonnes of wheat this year, unchanged from the previous year, Agriculture Minister Fahad Balghunaim said on Tuesday.

'In 2009, the (state-owned grains) organisation imported about 2 million tonnes of wheat ... This year we will import about the same, 2 million tonnes. Our annual needs stand at 3 million tonnes,' Balghunaim told reporters at a meeting of the Saudi grains authority the Grains, Silos and Flour Mills Organization (GSFMO).   

In 2008, the kingdom abandoned a 30-year wheat cultivation plan that had helped it cover its domestic needs to save water resources.

The move has turned Saudi Arabia through the GSFMO into one of the biggest and most lucrative new buyers in the international grains market.

'The state has prioritised water security over food security,' Balghunaim said.

Wheat farmers in the kingdom have abandoned the crop at a faster rate than the annual 12.5 percent decline authorities targeted.
   
'Wheat production dwindles one year after the other ... But the decline is exceeding 12.5 percent because farmers no longer find it (wheat cultivation) viable,' the minister added.

The kingdom said in 2008 it would import all of the wheat it consumed by 2016.

GSFMO awarded on Tuesday a 140 million Saudi riyals contract ($37.33 million) to Italy-based Ocrim Spa to build a fodder plant. Other water-intensive crops the kingdom is phasing out include soya beans and animal fodder. - Reuters