Economy, Business And Markets

Gov’t Wheat Purchase in Full Swing

Gov’t Wheat Purchase in Full Swing
Gov’t Wheat Purchase in Full Swing

More than 1.82 million tons of wheat worth 23 trillion rials (close to $616 million) have been purchased by the government from local farmers in 11 provinces, registering a 3% decrease compared with the corresponding period of last year, Government Trading Corporation of Iran’s deputy for domestic commerce said.

“Despite the 3% decline in purchases, our estimate is that last year’s record will be repeated this year,” Hassan Abbasi Maroufan was also quoted as saying by Eranico.

Khuzestan, Fars, Kerman, Sistan-Baluchestan and Ilam top the list of provinces from where the purchases were made.

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 for the first time in the history of the Islamic Republic.

Deputy Agriculture Minister and GTC Chairman Ali Qanbari said it is estimated that this year too, about 11 million tons of the grain will be purchased, and as such, the self-sufficiency attained last year will endure in the current year.

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.

Minister of Agriculture Mahmoud Hojjati announced on Sunday that order registrations for importing durum wheat are forbidden, in a letter addressed to Minister of Industries, Mining and Trade Mohammad Reza Nematzadeh.

The decision was made due to the surplus reserves of the crop in the country.

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