December 22, 2004

 

 

Iran Sees Increase in Wheat Output Despite Inadequate Silos

 

Wheat production in Iran, through dry and irrigated farming methods this year, has increased. Production rose by 7% and 5.2%, respectively, compared with the figures for the last crop year, according to a senior agriculture official said,

 

Production in the country totaled at least 14 million tons last year.

 

Mohammad Eskandari, a senior advisor to the minister of agriculture jihad revealed that the annual wheat production target has been set at 18 million tons.

 

"We would be able to achieve this goal only if we manage to improve farming methods and make optimum use of the potentials," he said, stressing that grounds have not yet been prepared for reaching the 18-million-ton target.

 

The official forecast a 10% increase in wheat production in the next crop year, expressing hope that the government would also increase wheat purchase from farmers by 7%.

 

He said that while wheat farmers do not currently face a shortage of fertilizers, more silos are required given the rise in production.

 

"Nevertheless, we cannot halt production due to insufficient silos," he said, adding that the government has allocated 340 bln rials for the wheat self-sufficiency program.

 

Experts believe that wheat cultivation in Iran is economical given the low production costs. In 2002, wheat production cost $100 per ton for Iran, whereas it cost $266 for the United States, which is one of the world's top wheat exporters.

 

The US government exports wheat at $150 per ton as part of its dumping policy.

 

However, while Iran has always had a huge potential for wheat production, it was the world's largest importer in recent years, spending billions of dollars on excessive imports.

 

Iran announced in November it was self-sufficient in wheat production after 45 years of importing the commodity. Iran produced 14 million tons of wheat, which is more than its average domestic consumption of 11 million tons in the last crop year.

 

The country imported about 10 million tons of wheat in 1998. It launched the wheat self-sufficiency drive in 2001.