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Iran purchases 6.6 million tons of wheat from domestic farmers

Business Materials 6 September 2014 23:20 (UTC +04:00)

Tehran, Iran, Sept. 6

By Milad Fashtami - Trend:

Iranian government purchased 6.627 million tons of wheat from domestic farmers from the beginning of the current Iranian calendar year (March 21) so far.

The total price of purchased wheat amounts to 70.281 trillion rials (some $2.267 billion based on the exchange rate of USD at the free market), Iran's IRNA News Agency reported on September 6.

The Iranian government has reportedly launched 712 centers for purchasing wheat from farmers in 31 provinces.

The figure shows over 33 percent increase compared to previous year.

Deputy Agricultural Jihad Minister Abbas Keshavarz said in August that Iran will not be able to reach self-sufficiency on wheat production in the next four years.

"The country's total production will reach 13.4 million tons by the end of the Iranian calendar year of 1397 (to end March 20, 2019)," he said, Iran's ISNA News Agency reported on August 13.

"The country's wheat imports will also stand at 1.35 million tons by the end of the mentioned year," he said.

By producing 10.5 million tons of wheat, Iran reached self-sufficiency in wheat production in 2004 and during the presidency of Mohammad Khataai. But according to Iran's current president, Hassan Rouhani, the country's output was decrease by one million ton per year since 2004 and now the country needs to import 7.2 million tons to meet its domestic demands.

According to Food and Agriculture Organization of the United Nations (FAO), Iran produced 14 million tons of wheat in the previous calendar year (which ended on March 20).

However, during Mahmoud Ahmadinejad's presidency Iran reportedly submitted false reports to Food and Agriculture Organization of the United Nations (FAO) in regards to the country's wheat output.

Isa Kalantari, the secretary general of Iran's House of Farmers, previously said that the country's domestic need is around 13 million tons, which is even one million tons less than the announced production rate in previous year. However, the country imported considerable amount of wheat.

MP Seyed Razi Nouri said in September last year that the country's wheat production has fallen to 3 million tons per year.

Iran customs administration's reports suggest that Iran imported 3.5 and 6.7 million tons of wheat in the calendar years of 1392 (which ended on March 20, 2013) and 1391 (which ended on March 20, 2012), respectively. Ahmadinejad's administration had put the production rate of the mentioned years at 13.5 and 14 million tons.

It is while Iran's wheat imports in the calendar year of 1390 (ended March 20, 2011) were around 233,000 tons. So the country's imports were increased by 30 times in 1391.
Iran has imported 1.4 million tons of wheat in the first two months of the current year (March 21 - May 20).

Iranian media reports suggest that due to the low price, farmers are not willing to sell their wheat to the government and prefer to sell them to private buyers.

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