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Iran prohibits exports of wheat

Business Materials 21 May 2013 13:04 (UTC +04:00)

Azerbaijan, Baku, May.21/ Trend F.Karimov/

The trade Promotion Organization of Iran has disallowed exports of wheat in a bid to curb illegal selling of wheat at western borders, the Fars News Agency reported.

On Saturday, a number of Iranian MPs criticized the government for buying wheat from farmers at a low price, saying it has encouraged Iraqi merchants to buy wheat from Iranian farmers at a higher price, Tehran Times reported.

"Now, Iraqi dealers are buying wheat produced in the country at a price of 1200 tomans (12,000 rials or half a U.S. dollar)," three MPs said in separate messages to the president and the administration's economic team.

The Agriculture Jihad Ministry purchases wheat from domestic producers at a price of 7000 rials per kilo.

The price set by the government will lead to the "destruction" of the agricultural industry, the MPs stated.

"Last year (March 2012-March 2013), we celebrated self-sufficiency in the production of wheat, while we imported six million tons," said MP Ahmad Shohani, who represents the western city of Ilam.

If this trend continues this year, Iran will be forced to import 10 million tons of wheat instead of six million, he added.

MP Hamed Qaderi, who represents the city of Qorveh in Kordestan Province, said the government pays 12,000 to 13,000 rials for each kilogram of wheat that it imports while it pays 7000 rials per kilo for wheat produced domestically.

The UN Food and Agriculture Organization (FAO) said Iran was the 11th leading producer of wheat in the world in 2012.

According to the report, "Crop Prospects and Food Situation," Iran's wheat production has reached 13.8 million tons in 2012.

The report added that Iran's wheat production in 2011 was 13.5 million tons and the country ranked at 13th place of world's largest wheat producers.

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