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Iran to sell wheat to neighboring countries at high price

Business Materials 2 October 2019 21:04 (UTC +04:00)

Baku, Azerbaijan, Oct. 2

By Elnur Baghishov - Trend:

Iran will sell wheat to such neighboring countries as Iraq or Pakistan at a high price because the government can not cover the expenses for wheat production and transportation, Chairman of the Iran National Fund of Wheat Farmers Ataullah Hashemi said.

Farmers will not sow wheat or will not sell wheat to the government if the purchase price of wheat is not changed, Hashemi added, Trend reports referring to Mehr agency.

Hashemi added that in this case the farmers will sell 1 kg of wheat at 38,000 rials to Iraq ($0.90 according to the official exchange rate, $0.33 according to the exchange rate in the black market) and at 29,000 rials to Pakistan ($0.69 according to the official exchange rate, $0.25 according to the exchange rate in the black market).

Last Iranian year (March 21, 2018 - March 21, 2019), the state company purchased 1 kg of wheat at 17,000 rials ($0.40 according to the official exchange rate and $0.15 according to the exchange rate in the black market). This price has been set at 22,000 rials this Iranian year ($0.52 according to the official exchange rate and $0.19 according to the exchange rate in the black market).

However, taking into account the current inflation rate, the price should be at least 25,000 rials ($0.59 according to the official exchange rate and $0.22 according to the exchange rate in the black market), he said.

Hashemi added that if the government does not change this price, wheat sowing will also be reduced.

A number of products, including wheat, rice and tea, are bought by the state companies in Iran upon a guarantee.

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