March 16, 2012

Iran carries out its second US wheat purchase

As Iran builds stockpiles in response to tough new sanctions aimed at containing Tehran's nuclear programme, it has made its second purchase of US wheat in recent weeks.

A weekly export sales report released by the USDA on Thursday (Mar 15) showed that Iran has bought an additional 60,000 tonnes of US wheat. USDA reported earlier this month that Iran had made a rare purchase of 120,000 tonnes of hard red winter wheat for delivery before May 31.

The US has imposed sanctions hitting Iran's oil trade and central bank to pressure Tehran to shutter its nuclear programme, which Iran says is for peaceful purposes. A US advisory group said last month that the sanctions are squeezing Iran's oil exports even before they take effect in June.

The sanctions are making it increasingly difficult for the country to pay for staple foods, causing hardship for its 74 million people. The wheat sales are approved under a humanitarian authorisation from the Treasury Department to ensure food and other needed items reach the Iranian people.

Iran also has approached Pakistan and India and has bought wheat from Russia, Germany, Canada, Brazil and Australia in recent months in an effort to build its food stores.