Iran to increase guaranteed purchase price for wheat

Business Materials 11 December 2020 15:50 (UTC +04:00)
Iran to increase guaranteed purchase price for wheat

TEHRAN, Iran, Dec.11


The Iranian government is expected to increase the wheat guaranteed purchase price to at least 48,000 rials (about $1.1) per kilo.

Iranian President Hassan Rouhani has announced the law to reform guaranteed purchase price of necessary agricultural products to the Plan and Budget Organization, Trend reports citing ILNA.

Experts predict that implementation of the following law would increase the guaranteed purchase price of agricultural products, especially wheat and farmers would benefit from it since they had faced an increase in inflation and costs in the current Iranian year (started March 20, 2020).

"The government has previously announced a guaranteed purchase price of 40,000 rials (about 95 cents) for the current crop year for per kilo of wheat that was objected by farmers and increase the production costs," said Managing director of National Assembly of Agricultural Experts.

"The policy of eliminating the assignment of official foreign currency rate of 42,000 rials per USD for importing necessary material for production also increased the production costs. The following law could help farmers to set the purchase price and the Ministry of Agriculture could defend farmers' rights," said Ali Khan Mohammadi.

He went on to say that the Agriculture Minister could choose eight members council to set the guaranteed purchase price, the following council is currently being formed and it is expected that the guaranteed purchase price of agricultural products would increase.

"Considering inflation and foreign currency costs the guaranteed purchase price should not be less than 52,000 rial( about $1.2) so consumers would not face more difficulties," he added.