Iran Reports 30% Surge in Domestic Wheat Purchase

Date: 01 June 2022 - 21:29

News ID: ۱۰۳۲۷۸

TEHRAN - The Government Trading Corporation (GTC) has reported that the country’s purchase of domestically-grown wheat has increased by nearly 30% in the harvesting season that started in early April as a double increase in the guaranteed purchase price (gpp) for wheat announced by the government earlier this year has led to better yields across the country.
The Government Trading Corporation of Iran said that purchase of wheat from domestic farmers had risen by 510,000 metric tons (mt) year on year in nearly two months to late May to reach a total of 2.246 million metric mt.
The GTC said its wheat purchases had expanded to cover 16 provinces that are mostly located in south of the country where harvest starts sooner because of warmer weather.
The state-run company said that it had spent more than 237 trillion rials ($766 million) on domestic wheat purchases this year, up 250% compared to the April-May 2021.
Iran has nearly doubled the gpp for wheat to 115,000 rials ($0.4) per kilogram for the harvesting season to late July.
That came after a war between Russia and Ukraine that started in February sent the global prices of grains to record highs.
Iran imported around 8 million mt of wheat over the calendar year to late March with a bulk of shipments supplied from Russia.
However, the Iranian agriculture ministry hopes it could meet the growing demand for wheat this year with an increase in domestic crop.
A senior agriculture ministry official said that Iranian production of wheat from drylands could reach around 8 million mt per year.
Alireza Mohajer, a deputy agriculture minister, said the government will provide more support to dryland farmers in Iran to help boost wheat yields in coming years.