Iranian govt begins guaranteed purchase of wheat

The Ministry of Agriculture has kicked off its guaranteed
purchase of wheat from local farmers in the new Iranian year (started March
21), the head of Government Trading Corporation said.

“Purchases have been made in
Sistan-Baluchestan province,” Saeed Rad said on Monday.

He added, “This year, around 33,000 hectares of farm lands
have gone under cultivation across the province, and we are expected to buy
some 75,000 tons of the grain from the farmers”.

Last year, over 7 million tons of wheat were domestically
produced and the government purchased all from the farmers at guaranteed
prices. “It is estimated that this year, more wheat will be purchased”, Rad
said.

GTC is a government-owned company specializing in the
purchase, import and distribution of essential foodstuff. It is the lever for
enforcing market controls.

The company is also in charge of maintaining a supply of
wheat, rice, cooking oil and meat, as the country’s strategic reserve of
essential commodities.

Every year, the government buys certain strategic crops,
including wheat from local farmers at guaranteed prices, to build up its
strategic reserves and control prices in the domestic market.