Wheat imports began in April and so far around 8 million tons of the staple grain have been purchased from foreign sources, says CEO of the Government Trade Corporation, affiliated with the Agriculture Ministry.
“More than 3 million tons of the purchased wheat have been imported so far and found its way into the local market. The remaining 5 million tons will gradually reach the country’s southern and northern ports to undergo clearance procedures,” Yazdan Seif was also quoted as saying by ILNA.
The official noted that in the current fiscal year (started March 21), the government has purchased only 4.53 million tons of wheat from local farmers as part of its guaranteed purchase plan, noting that this was due to an overall decline in production as a result of low precipitation, water scarcity and bad weather conditions.
“This caused a deficit of more than 8 million tons, since our annual domestic demand stands at around 13 million tons. So the government set out to import the crop as soon as possible to be able to meet the local demand and fill the country’s strategic reserves,” he added.
Seif said this year’s demand for wheat has been supplied and businesses, industries, bakeries and other consumers will have no problem in procuring the grain.
According to Mohammad Reza Mortazavi, the head of the Federation of Iranian Food Associations, this year’s wheat production stood close to 5 million tons.
“Drought and water shortage hit after a few years of self-sufficiency. What made matters worse is that the grain, due to its relative low price compared with other animal feed, was used in livestock and poultry farms,” he added.
The official said the country needs to store at least 3 million tons of wheat for its strategic reserves every year when production is normal, but the figure has to increase to 5 million tons at times when the harvest is hit by drought or other factors.
“Global wheat prices have reached their highest in the past five years. Grains in general have experienced a price rise of up to 80% at times. Russia, the US, Canada, Australia, Argentina, Germany and France are the world’s top wheat producers and Egypt, Iraq and China are the biggest importers,” he said.