Azerbaijan, Baku, Sept. 24/ Trend M. Moezzi/
A member of Iran's Farmer's House is protesting over policies that help a '100 people mafia' of wheat processors while harming four million wheat growers.
Iran's government has avoided setting a guaranteed price for buying wheat. The Ministry of Agriculture is acting as an advocate for the manufacturing sector and setting prices for wheat and barley seeds, Hassan Mohammadi, a member of the Farmer's House central council, told Mehr news agency.
While the government is buying wheat at 4200 rials per kilo (34 cents USD), it is paying 7000 rials (57 cents) a kilo for processed wheat seeds, said Mr. Mohammadi.
"About 1.2 million tons of wheat seeds are needed for the six million hectares of land in Iran. Farmers supply half of the seeds needed and the other 600 tons is produced by 100 people who have 'a special relationship' with the government, "said Mr. Mohammadi.
Each kilo of wheat bought as seed from farmers is priced at 5000 rials (40 cents) a kilogramme, while processed seeds are priced at 7000 rials a kilogramme, giving processors a 2000 rial (16 cents) profit.
Mr. Mohammadi said it is unfortunate that some "play the middleman for the 100 people mafia" of wheat seed processors as four million farmers are hurt financially. The reluctance to buy seeds at the higher price will lead to a 15 per cent drop in the country's wheat yield.
The official rial to dollar exchange rate is 12,260 rials per USD.