Economy, Domestic Economy

Iran to Export Wheat as Production Increases

Iran to Export Wheat as Production IncreasesIran to Export Wheat as Production Increases

Iran, the second-largest wheat consumer in the Middle East, will export 400,000 tons of the grain after domestic production increased.

Iran bought 8.08 million tons of wheat from local farmers this year, 1.4 million tons more than last year, Ali Qanbari, deputy agriculture minister, said on the Government Trading Corp.’s website.

Durum wheat, used to make pasta, will be exported, he was quoted as saying by Bloomberg.

“This year, despite a decrease in rain, thanks to the motivation of farmers and the support given to them, an additional 1.4 tons of wheat were purchased compared to last year,” he said.

Iran ranks with Turkey as the second-largest wheat buyer in the Middle East, behind Egypt, the world’s biggest wheat importer, according to US Department of Agriculture data.

Wheat prices in Chicago, the global benchmark, dropped 17% this year with production exceeding consumption for a third consecutive year, USDA data show.

“Iran won’t need to import wheat because local supplies are sufficient,” Qanbari said in August.

Stockpiles will be 8.3 million tons for 2015, compared with the average of 3.1 million tons for 2012 to 2014, according to the Food & Agriculture Organization.

Wheat production is estimated by the USDA to grow to 14 million tons from 13 million a year earlier with consumption rising to 18 million tons from 17.5 million.