Wheat imports stood at 3.6 million tons worth $1.2 billion since the beginning of the current fiscal year on March 21, up until Nov. 6, registering a 60% rise in volume and 92% growth in value compared with the similar period of last year.
The grain, considered an essential good, is imported using subsidized foreign currency (at the rate of 42,000 rials per dollar), ISNA reported.
Also known as necessity goods, essential goods are products consumers will buy, regardless of changes in income levels.
Yazdan Seif, CEO of the Government Trade Corporation, affiliated with the Agriculture Ministry, said this year the government managed to buy only 4.53 million tons of wheat from local farmers as part of its guaranteed purchase plan, adding that this was due to an overall decline in production, which in turn resulted from low precipitation, water shortage and bad weather conditions.
“This left us with more than 8 million tons of deficit, since our annual domestic demand stands at 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.
Russia is Iran’s main wheat supplier, followed by Germany and some Eastern European countries.
Wheat imports began in April and around 8 million tons of the staple grain have been purchased from foreign sources, Seif said recently.
“More than 3 million tons of the purchased wheat have been imported so far and found its way to the local market. The remaining 5 million tons will gradually reach the country’s southern and northern ports to go through clearance procedures,” he was quoted as saying by ILNA.
Seif noted that this year’s need for wheat has been supplied and businesses, industries, bakeries and other consumers will have no problem in procuring the grain.