More than 10 million tons of wheat were produced in Iran in the current crop year (started September 22), registering a 25% rise compared with the last crop year, according to the CEO of Government Trading Corporation.
“Around 7.16 million tons of the total sum were purchased at guaranteed prices from local farmers across 31 Iranian provinces,” Saeed Rad was also quoted as saying by ILNA.
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.
The official noted that in the first eight months of the current Iranian year (March 21-Nov. 21), close to 4 million tons of the staple grain were imported.
“Our wheat reserves have increased by 2 million tons this year, which means a 40% year-on-year rise,” he added.
Iran’s domestic demand currently stands at 11 million tons per year, of which 9 million tons are allocated for bread production and the rest is used in food industries.
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 96.48 million tons of wheat worth $22.84 billion over the past 30 years, former 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 and 2021-22 with 7.07 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.
Private Imports Allowed
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 become 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 noted that every year domestic wheat harvest comes to an end in September, so imports of the grain cannot hurt local farmers at this time.
FAO Forecast
Wheat production in Iran is forecast by the Food and Agriculture Organization of the United Nations to rise from an estimated 10.4 million tons in 2021 to 13 million tons in 2022, with the average annual production in 2018-21 at 14.3 million tons.
Imports are forecast to decline from an estimated 7.9 million tons in 2021-22 to 5 million tons in 2022-23, with the average annual production in 2018-21 at 5 million tons.
FAO has recorded no wheat exports from Iran throughout the surveyed periods.
Total utilization is expected to increase from an estimated 16.2 million tons in 2021-22 to 15.5 million tons in 2022-23, with the average annual production in 2018-21 at 16.5 million tons.
Stocks volume are forecast to increase from an estimated 8.5 million tons by the end of 2022 to 9.4 million tons by the end of next year, with the 2019-21 average annual production at 6.4 million tons.
Per capita consumption is forecast to rise from 163.8 kilograms/year in 2021-22 to 164.9 million tons in 2022-23, with the average annual production in 2018-21 at 161.7 million tons.
One of Mideast’s Biggest Storage Capacity
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 storages with a capacity of 18.01 million tons of wheat for long-term periods and simple semi-mechanized storages with a capacity of 3.4 million tons 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.
