Iranian government buys $650 million worth of wheat from domestic farmers
Azerbaijan, Baku, Jun.3/ Trend F.Karimov/
Iran has bought eight trillion rials (about $650 million) worth of wheat from domestic buyers since the beginning of the current Iranian calendar year (March 21), the Tasnim News Agency quoted Iranian industry minister Mehdi Ghazanfari as saying.
Farmers sold 1.1 million tons of wheat to the government during the period, up 16 per cent year on year.
Khuzestan province was the top producer of wheat with 685,000 tons of output. The government has raised the guaranteed price of buying wheat this year by 70 per cent, so that it buys each kilogramme of wheat at 7200 rials from framers.
The Trade, Promotion Organisation of Iran has disallowed exports of wheat in a bid to curb illegal selling of wheat at western borders.
A number of Iranian MPs have criticised 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.
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.
The UN Food and Agriculture Organisation (FAO) said Iran was the eleventh 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 thirteenth place of world's largest wheat producers.