Iran expects domestic wheat purchases to increase by 13%

Iran’s Ministry of Agriculture Jihad (MAJ) expects this year’s wheat purchases from domestic farmers would increase by up to 13% versus the previous harvest.

According to Press TV, MAJ’s Head of Wheat Farming Sohrab Sohrabi said on Wednesday that Iran’s wheat yields in the April-July harvest season could reach 8.5 million metric tons (mt) in case the current favorable precipitation and temperature conditions persist.

Iran’s Government Trading Company (GTC), which is a MAJ subsidiary, bought some 7.2 million mt of wheat from domestic farmers last year under its guaranteed purchase program. The MAJ figures show wheat purchases by private buyers reached 0.3 million mt over the same period.

Sohrabi said this year’s precipitation rates have been 10% higher than figures reported last year, helping boost wheat yields across Iran.

He said wheat acreage in the country has reached 5.95 million hectares without providing any comparison to last year figures.

Experts say an increase in prices could further boost domestic wheat purchases in Iran this year.

Iran’s Foundation of Wheat Growers said on Wednesday that it expects the GTC to increase its guaranteed purchase price for wheat by 30% to 170,000 rials ($0.34) per kilogram.

ME