TEHRAN, Iran, April 21. The Minister of Agriculture Jihad of Iran Javad Sadati-Nejad said the Ministry has focused on contract farming of two strategic crops of wheat and rice, Trend reports citing Mehr.
Iran's Agricultural Minister instructed the Central Organization for Rural Cooperatives (CORC) of Iran to create rural markets throughout the country and open an Online Distribution platform, in order to directly distribute the agricultural products into the market.
For years, Iran has covered wheat and several other crops in its guaranteed purchase price scheme. However, purchases have declined in recent years because of price issues causing some farmers to switch to other crops or to sell their produce to the middlemen.
A new administrative government that took office in August has vowed it would expand contract farming to major crops to prevent price fluctuations in the market that are caused by a lack of balance in supply and demand.
Contract farming can be defined as agricultural production carried out according to an agreement between a buyer and farmers, which establishes conditions for the production and marketing of a farm product or products.