Economy, Business And Markets

Iranian Gov’t Begins Guaranteed Purchase of Wheat

Gov’t Begins Guaranteed Purchase of WheatGov’t Begins Guaranteed Purchase of Wheat

The government has kicked off its guaranteed purchase of wheat from local farmers in the new Iranian year (started March 21). “Purchases have been made in Kerman and Sistan-Baluchestan provinces,” Ali Qanbari, the head of Government Trading Corporation, was quoted as saying by Eghtesad Online.

GTC is a government-owned company specializing in the purchase, import and distribution of essential foodstuff. It is the lever for enforcing market controls.

The company is also in charge of maintaining a supply of wheat, rice, cooking oil and meat, as the country’s strategic reserve of essential commodities.

A record high of 14 million tons of wheat were domestically produced last year, more than 11.76 million tons of which worth over $4 billion were purchased by the government from local farmers at guaranteed prices.

This helped Iran achieve self-sufficiency in wheat production. “It is estimated that this year too, around 11 million tons of the grain will be purchased, and as such, the self-sufficiency attained last year will endure in the current year,” Qanbari said.

Every year, the government buys certain strategic crops, including wheat from local farmers at guaranteed prices, to build up its strategic reserves and control prices in the domestic market.

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