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Guaranteed wheat purchasing from Iranian local farmers rises to 900,000 tons

Business Materials 2 May 2023 13:03 (UTC +04:00)
Elnur Baghishov
Elnur Baghishov
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BAKU, Azerbaijan, May 2. Iranian Government Trading Corporation (GTC) has purchased approximately 900,000 tons of wheat from local farmers under a guarantee from the beginning of the current harvesting season in the country (March 28, 2023) to date, Executive Director of the GTC, Saeed Rad told IANA, Trend reports.

The director emphasized that the current wheat harvesting season in the country will last till the end of the 6th month of the current Iranian year (September 22, 2023).

Rad added that at present, 1 kg of wheat is purchased from farmers for 115,000 rials (about $2.73). After the final price is determined, the additional funds will be paid to the farmers.

According to him, the harvesting of wheat naturally started in the southern regions of the country. So far, the most amount of wheat was purchased from farmers in Khuzestan Province under a guarantee.

Overall, 13 million tons of wheat are forecasted to be harvested in Iran for the current Iranian year (March 21, 2023 through March 19, 2024). Of that amount, 8-8.5 million tons are estimated to be purchased by Iranian Government Trading Corporation (GTC).

Meanwhile, in the last Iranian year (March 21, 2022 through March 20, 2023), about 11.5 million tons of wheat were harvested in the country, of which 7.5 million tons were purchased by the GTC.

Last year, the price of 1 kg of wheat was set up at 115,000 rials (about $2.74), while, 1 kg of wheat is set at 130,000 rials (about $3.09) for the current season.

However, considering that the set price is low, the Economic Council in Iran will determine the new price for wheat to be purchased from farmers in the next week (April 1 through April 8).

In total, wheat was planted on 5.95 million hectares of land in Iran in the current season. Of this, 3.96 million hectares accounted for dry-farming land, while 1.99 million hectares for ordinary agricultural land.

A number of products, including wheat, tea, rice, and other products are purchased from farmers by GTC under a guarantee in Iran.

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