August 21, 2008

 

 

Iran is expected to increase imports of wheat as its domestic production is expected to drop by one third due to drought conditions.

 

The International Grains Council said that Iran had reduced its wheat crop forecast to 10 million tonnes in 2008, a steep drop from its production estimate of 15 million tonnes last year.

 

Iran's Commerce Minister said in June that the country needed to import 5m tonnes to meet its normal annual consumption requirements, according to  Simpson, Spence and Young Consultancy and Research. 

 

In August, the Iranian government was reported to have provided its trading agency with $820 million to buy staple foods, such as wheat.

 

In June, Iran purchased between 600,000 tonnes and 1 million tonnes of wheat from Canada for delivery in August.

 

The purchase led to the IGC increasing its import forecast for the 2008-2009 season to 4.3 million tonnes, up from 2.3 million tonnes.

 

Iran imported total of just 100,000 tonnes last year.

 

Iran has purchased a total of nearly 690,000 tonnes of wheat this marketing year, according to the USDA.

 

Iran could also buy Kazakhstan wheat.

 

In Iraq, the IGC said the country would take delivery in the 2008-2009 trade year of 4.1 million tonnes of wheat, up 400,000 tonnes.

 

This is also up from the 2006-2007 total of 2.9 million tonnes.