Iranian government expects it will buy as much as 8 million metric tons (mt) of wheat from domestic farmers in the current harvesting season ending late July, according to the head of the country’s Plan and Budget Organization.
Davoud Manzoor said on Saturday that although the wheat harvest has not begun in many parts of the country, the government has bought around 2.5 million mt of the grain since harvest began in April.
Noting that the government should provide the resources for buying wheat in any possible way, the official said that some 1,200 trillion rials ($2.27 billion) is required for the purchase of 8 million mt of wheat.
The Iranian government buys wheat from domestic farmers at the cost of 150,000 rials ($0.284) per kilogram while it can import wheat at a cheaper price of 110,000 rials ($0.208) per kilogram, Manzoor said.
He noted that the government is buying wheat from the domestic farmers at a higher price than the import price to help the country get self-sufficient in the production of the grain.