Iran wheat guaranteed price needs revision
TEHRAN, Iran, OCT.21
Iran's official guaranteed price for wheat is 22,000 rial (about 52 cent) per kilo; however, the rate is not satisfactory in relation of farmers' needs and costs, said deputy secretary of Iran's Farmer House, agricultural association.
Enayatollah Biabani discussed the wheat purchase guaranteed rate in an interview with Trend.
"The official rate of wheat guaranteed price is not accepted by farmers, since it does not cover the costs. The wheat price around the world is higher, and in case of wheat imports government has to pay more money," the deputy secretary.
"Farmers demand the government to revise the rate to make it compatible with their. "If the government provides cheap fertilizers and pesticides to farmers or reduces bank loans interest rate, this will motivate them to increase the production," Biabani said noting the ways the government can provide assistance to the farmers.
"Farmers suggest the purchase guarantee price to be 32,000 rial (about 76 cents) or even 40,000 rial (about 95 cents), but eventually the price should be determined to prevent losses for producers. The farmers can consult with Iran's Farmer House and Wheat Foundation to have the rates be reviewed by experts," he added.
The Economy Council has set 22,000 rial (about 52 cents) per kilo as wheat purchase guarantee price this year, 16,300 rial (about 38 cents) for oat, 50,200 rial (about $1.1) for beet, 61,120 rial (about $1.4) for rice, and 48,760 rial (about $1) for cotton. Wheat sold for free market bakeries is not covered by the subsidies.
The government should have announced the purchase guarantee rates for agricultural products by September 22 to allow farmers to decide over their products in next crop year. The new wheat guaranteed price was announced earlier and caused farmers' objections.