Date Auction: Who Wins and Who Loses?
Opinion
Date Auction: Who Wins and Who Loses?
Mohammed Al-Marwani
Published: July 4, 2026 22:01 KSA
Dates are not just an agricultural crop in the Kingdom; they are part of the community's identity and food memory, and one of its most prominent national products. However, it seems that this product, which has been associated with the Saudi table for decades, is going through a phase that calls for serious consideration, especially when we see the large gap between what the farmer receives and what the consumer pays.
Colleague Sami Al-Mughamsi reported auction prices directly from the date market in Madinah, and the figures were shocking. Some varieties of fresh dates (rutab) were sold for two or three riyals per foam box. Meanwhile, the price of al-Rothana, one of the finest types of rutab, did not exceed ten riyals in many cases. Al-Ajwa, the most famous dates of Madinah, was priced in a way that does not reflect its value or status. Despite these low prices, as soon as the product leaves the auction yard, its price in retail stores jumps to several times that. It is as if we are dealing with two separate markets: a market that buys from the farmer at the lowest prices, and a market that sells to the consumer at high prices. Between these two markets, the gap widens, raising an important question about who really benefits from this large difference.
The farmer works for months, bearing the costs of irrigation, labor, and crop care. Then he finds himself forced to sell at prices that may not cover production costs. Meanwhile, profit margins in the intermediary and brokerage circles appear much higher than what the producer receives. This scene reflects a clear imbalance in the marketing system and raises questions about market efficiency and oversight mechanisms. Additionally, changes in the purchase of dates for iftar tables at the Prophet's Mosque during Ramadan have affected some Madinah varieties, especially al-Rothana. This variety used to be stored in preparation for the holy month, until some companies turned to other varieties from outside the region. This increased pressure on the local farmer. In contrast, al-Ajwa remains another witness to the gap between the auction and the retail market. It is sold at auction for between three and ten riyals per kilogram, while its price in some retail stores reaches 25 riyals as a minimum, and may exceed 75 riyals. This disparity raises questions about the reasons for this gap and who benefits from it. Protecting the farmer is necessary to ensure the sustainability of this national product. What is required is not intervention in prices, but market regulation, narrowing the gap between auction and retail prices, and ensuring that the consumer benefits from low prices instead of keeping profits confined to a specific group. The greatest role remains with the Ministry of Environment, Water and Agriculture, in cooperation with the Ministry of Commerce, to restore balance among the farmer, the merchant, and the consumer, so that the farmer receives a fair share of the value of his produce, and Saudi dates reach people's tables at a price that reflects market fairness and product quality.
Articles
Original source: Al-Madina
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