Economy, Domestic Economy
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Gov't Wheat Purchases Top 8 Million Tons

Gov't Wheat Purchases Top 8 Million TonsGov't Wheat Purchases Top 8 Million Tons

More than 8.2 million tons of wheat worth close to 105 trillion rials ($2.99 billion at market exchange rates) have been purchased from local farmers since the beginning of the harvest season in late March, which indicates a 27% increase in weight compared with last year's corresponding period, according to the Agriculture Ministry.

The government buys wheat from local farmers at guaranteed prices to build up its strategic reserves and control prices in the domestic market.

Khuzestan with 1.4 million tons, Golestan with 1.26 million tons and Fars with 810,000 tons top the list of provinces from where purchases have been made, Mehr News Agency reported.

It is estimated that this year wheat production from 6 million hectares of irrigated and rainfed fields will rise from last year’s 11.5 million tons to more than 13 million tons, 10 million of which will be purchased by the government.

Last year, the government bought 8.08 tons of wheat from farmers.

Iran was the 11th biggest producer of wheat worldwide in 2015 for the third consecutive year, according to a recent report of the Food and Agriculture Organization of the United Nations.

In its latest report on Iran’s agricultural sector, the Business Monitor International estimates that Iran’s wheat production will reach 16 million by 2019/20 and wheat yields are expected to improve, because of the use of modern technology, greater access to relevant inputs and a larger area of the country benefiting from new irrigation facilities.

Currently, 85% of domestic demand for wheat are met by local production. The government plans to achieve complete self-sufficiency in three years.

Financialtribune.com