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Wheat farmers in Iran get most of their payment from government

Business Materials 12 September 2023 14:18 (UTC +04:00)
Elnur Baghishov
Elnur Baghishov
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BAKU, Azerbaijan, September 12. The Iranian government has paid 70 percent of the money for wheat purchased from local farmers under a guarantee since the beginning of the current wheat harvesting season in the country (started March 28, 2023), said Mohammad Ali Nikbakht, Minister of Agriculture Jihad of Iran, Trend reports.

The minister noted that more than 10.3 million tons of wheat worth approximately 1.55 quadrillion rials (about $36.8 billion) have been purchased from farmers in Iran in the specified time frame.

Nikbakht added that the farmers have received 1.1 quadrillion rials (about $26.2 billion) so far for their wheat.

He also pointed out that the Iranian President Ebrahim Raisi has instructed the Plan and Budget Organization of Iran to pay the remaining amount to the farmers by the end of the 6th month (September 22, 2023).

Overall, 13 million tons of wheat are forecast 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 the Iranian Government Trading Corporation.

Meanwhile, 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 at 115,000 rials (about $2.74), while 1 kg of wheat is set at 150,000 rials (about $3.57) for the current season.

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 were ordinary agricultural land.

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