Iran increases wheat purchase price by some 11 percent

Iran Materials 19 July 2013 12:53 (UTC +04:00)

Azerbaijan, Baku, July 19/ Trend, N. Umid/

Iran's administration increased guaranteed purchase price of wheat from farmers from 7200 rials to 8000 rials per kilogram (which is about $0.32 based on the official rate of 24797 rials per each dollar), Iran's deputy Agriculture Jihad Minister, Naser Tavakkoli said, Fars news agency reported.

Administration will pay the difference to all farmers which have sold wheat based on previous price this solar year, (which started on March 21), Tavakkoli added.

At the same time each kilogram of wheat costs over 8500 rials for farmers the Fars News Agency quoted another Iranian deputy Agricultural Jihad Minister Jasem Saedi as saying on July 5.

The State Commerce Company imports wheat at $360-370 (8.9-9.1 million rials) per tons or 11,000 to 12,000 rials per kilogram.

In June, the Fars News Agency reported that the Central Bank of Iran has been authorized to allocate 70 trillion rials ($5.7 billion) based on the official dollar rate of 12,260 rials for buying wheat from domestic farmers.

A number of Iranian MPs have criticized the government for buying wheat from farmers at a low price, saying it has encouraged Iraqi merchants to buy the grain from Iranian farmers at a higher price.

Iran has imported 6.5 million tons of wheat worth $2.5 billion, during the last solar year (ended on March 20). From March 21 to May 21, Ahmadinejad's government imported $382 million worth of wheat as well.