TEHRAN, Iran, Nov. 3
Trend:
Iranian Farmers, with the help of parliament, have proposed a new formula for determining the guaranteed purchase price of wheat, which is now awaiting approval by the Guardian Council.
“Guaranteed purchase rate formula for agricultural products should be set according to the cost of production plus the rate of inflation and the rate of the product in the global and domestic markets,” the vice president of Iran`s Wheat Farmers Empowerment Foundation, Aigholi Imani said, Trend reports citing ILNA.
“In addition to the formula for determining the guaranteed purchase rate, not using the opinion of farmers in setting rates has been strongly protested by farmers,” he added.
He went on to say that “From now on, two farmers' representatives will be present in the meetings for determination of guaranteed purchase prices of the agricultural products.”
"The mentioned proposal has been approved by the parliament and is currently in the Guardian Council to be ratified,” he noted.
According to Imani with the approval of the plan in the Guardian Council, the guaranteed purchase price of each kilogram of wheat will increase to at least $1.1.
A total of 6 million tons of wheat worth 140 quadrillion rials ($577.32 million) have been purchased from local farmers in all 31 Iranian provinces in the current fiscal year (started March 20).
Every year, the government buys strategic crops, including wheat, sugarbeet, tea, barley, cotton boll, and oilseeds, from local farmers at guaranteed prices to control prices in the domestic market and fill its strategic reserves.