A total of 3.8 million tons of wheat have been imported since the beginning of the current Iranian year on March 21, which shows a 40% drop compared with the similar period of last year, the CEO of Government Trading Corporation said on Monday.
“So far this year, the government has bought around 7.2 million tons of the grain from local farmers as part of its guaranteed purchase program, registering a 60% year-on-year rise. The value of purchases stands at 830 trillion rials [$2.5 billion],” Saeed Rad was also quoted as saying by IRNA.
According to the official, last year’s (March 2021-22) purchases and imports stood at 4.5 million tons and 6.4 million tons respectively.
GTC, affiliated with the Agriculture Ministry, is in charge of ensuring an adequate supply of essential goods, including wheat, rice and cooking oil, to the local market.
Considered a staple in Iran, wheat is purchased every crop year by the government to build up its reserves and supply the market over time.
Rad noted that Iran’s domestic demand for wheat currently stands close to 11 million tons per year.
Iran has imported a total of 96.48 million tons of wheat worth $22.84 billion over the past 30 years, spokesperson of the Islamic Republic of Iran Customs Administration said recently.
“The highest volume of imports were registered in the fiscal 2014-15 with 7.43 million tons, 2021-22 with 7.07 million tons and 2001-2 with 6.77 million tons,” Rouhollah Latifi was also quoted as saying by ILNA.
He added that the lowest volume was registered in the fiscal 2018-19 with only 360 tons.
The private sector has been allowed to place orders for wheat imports as of Aug. 23. The government agreed to take the measure after seven years of banning wheat imports by private traders, according to the head of the Agriculture and Food Processing Commission of Tehran Chamber of Commerce, Industries, Mines and Agriculture.
“In a meeting with first vice president around three months ago, we made our request for the private sector to be allowed to be active in the field of wheat imports. Fortunately, our request was accepted and the government’s Economic Council agreed to give us the permit. Now a directive allowing private businesses to import different types of wheat has been sent to provinces across the country,” Kaveh Zargaran was also quoted as saying by the news portal of TCCIM.
The official noted that every year domestic wheat harvest ends in September, so imports of the grain cannot hurt local farmers at this time.
FAO Forecasts
The Food and Agriculture Organization of the United Nations expects Iran’s wheat production to reach 13 million tons in 2022, up from 10.4 million tons last year.
Five-year average output has been put at 13.5 million tons by FAO.
According to a FAO report published earlier this month, the global wheat production forecast for 2022 was raised since September by 10.2 million tons and is now expected to reach a record high of 787.2 million tons, up 1% from last year.
Better-than-expected harvest results in the European Union, predominantly related to improved yields of the soft wheat crop, and in the Russian Federation, owing to conducive weather, represent the largest proportion of this month’s increase. Good soil moisture at planting time and a favorable rainfall outlook have also bolstered Australia’s production outlook, pointing to a potential second largest wheat output on record in 2022, following the all-time high in 2021. These revisions more than offset a minor cut to Argentina’s wheat forecast, where limited rainfall degrades crop conditions, resulting in potentially lower yields. In Ukraine, the wheat production estimate remains the same this month at 20 million tons, also 38% down from the preceding year,” reads a FAO report published earlier this month.
Forecast at 774 million tons, total wheat utilization is foreseen to remain near the 2021-22 level following an upward revision of 1.3 million tons since September, driven by higher-than-previously-expected feed use of wheat in the European Union, as tighter supplies and higher domestic prices of maize are seen shifting demand to wheat.
Global wheat inventories are forecast to rise by 3.2% above their opening levels, to reach 303 million tons, up 3.6 million tons since the previous forecast. Better production prospects have lifted prospects for higher wheat inventories in the Russian Federation where, along with Canada, China and Ukraine, much of the projected wheat inventory growth is likely to be concentrated.
While nearly unchanged from last month, world wheat trade is forecast to fall in 2022-23 (July/June) by 1.9% below the 2021-22 record level to 192 million tons. Expected declines in wheat exports from Argentina, India and especially Ukraine from their previous season’s levels will likely outweigh higher shipments expected from Canada, the European Union and the Russian Federation, boosted by higher supplies. On the importer’s side, higher production is reducing purchases by China, Iran and Kazakhstan.
