May 4, 2011

Iran's wheat utilisation to fall to 6.4 million tonnes

Iran's local wheat consumption is forecast to fall from 8.7 million tonnes to 6.4 million tonnes in the current Iranian year as compared with last year, after a cut in subsidies in December, Deputy Commerce Minister Hamid Alikhani said.

The government paid some IRR40 trillion (US$3.8 billion) a year in bread subsidies, Alikhani said. The start of a five-year plan to phase subsidies including on wheat will increase competitiveness in flour and bread production and reduce bread waste, he said.

Based on February 2010 figures, each Iranian consumes about 8.7 kilos of bread a month and some 104 kilos a year, he said.