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Gov’t Doubles Wheat Purchase Price, Private Sector Displeased

Gov’t Doubles Wheat Purchase Price, Private Sector Displeased
Gov’t Doubles Wheat Purchase Price, Private Sector Displeased

The government has increased its guaranteed purchase price for wheat this year by 100%.
The price for the current Iranian year (started March 20) was set at 50,000 rials ($0.21) per kilogram in a joint meeting between representatives of the government and the Strategic Commodities Pricing Council on April 20. 
Iranian governments buy staple crops from farmers at set prices to fill its strategic reserves and control prices in the market.
First Vice Chairman of Majlis Agriculture, Water and Natural Resources Commission Jalal Mahmoudzadeh said the rise in prices will ultimately benefit the government and rid the country of the need to import the staple grain.
“The measure will eliminate middlemen from wheat trade, therefore smuggling of the product overseas will decrease significantly,” Mahmoudzadeh was also quoted as saying by IRNA.

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