The government has bought 7.5 million tons of wheat from local farmers so far this year (started March 21) as part of its guaranteed purchase plan, director general of Grains and Essential Goods Production Department of the Agriculture Ministry said on Saturday.
“This volume was worth more than 830 trillion rials [$2.34 billion],” Faramak Aziz-Karimi was also quoted as saying by IRIB News.
The government bought only around 4.52 million tons of the grain last year.
Considered a staple in Iran, wheat is purchased every crop year by the government to build up its reserves and supply the domestic market.
Iran’s domestic demand currently stands at 11 million tons per year. Some 9 million tons of this supply the country’s bread-makers and the remaining 3 million tons are used in industrial and pastry businesses.
A total of 1.7 million tons of wheat have been imported to Iran since the beginning of the current Iranian year on March 21, registering a 113% rise compared with the similar period of last year, the Government Trading Corporation of Iran announced last month.
GTC, affiliated with the Agriculture Ministry, is in charge of ensuring the adequate supply of essential goods, including wheat, rice, cooking oil, sugar and meat, to the local market.
Iran has imported a total of 96.48 million tons of wheat worth $22.84 billion over the past 30 years, the former spokesperson of the Islamic Republic of Iran Customs Administration said.
The highest volume of imports were registered in 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 later 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 communicated to provinces across the country,” Kaveh Zargaran was also quoted as saying by the news portal of TCCIM.
The official added that every year, domestic wheat harvest comes to an end in September, so imports of the grain cannot hurt local farmers at this time.
The Food and Agriculture Organization of the United Nations expects Iran’s total cereal production to increase by 13.5% in 2022 compared with last year to reach 20.3 million tons.
The new quarterly report titled “Crop Prospects and Food Situation” has put Iran’s five-year average annual production at 21 million tons.
2021 production was estimated at 17.9 million tons.
Coarse grains production is projected to reach 4.3 million tons in 2022, unchanged compared to last year. Five-year average output has been put at 3.9 million tons.
Wheat production is projected 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.
Iran’s wheat storage capacity currently stands at 21.41 million tons, making it one of the Middle East’s largest, according to the Government Trading Corporation.
The silos, located in 158 regions across the country, include metal, concrete and mechanized storage units with a capacity of over 18 million tons of wheat for long-term periods and simple semi-mechanized units with a capacity of 3.4 million tons of the grain for short-term periods, IRNA reported.
GTC says Iran’s demand for wheat storage is close to 11 million tons per year, adding that the surplus storage capacity is used as terminal for temporary imports and redistribution to regional countries, creating revenues and job opportunities for the country.
