Cause of decrease of wheat purchase

President
of the Iranian Cereal Association: Unfortunately they do not buy wheat at the
price determined and this causes 20-30 percent of farmers to not deliver their
wheat and keep it in storage.

Mohammad
Hasan Talati, speaking with the News Channel, said: if the 40% rise in prices
and inflation in various sectors related to wheat production is taken into
account, the price would be IRR 25000-28000, and if wheat is imported from
abroad with Nimaee exchange, the price would rise to more than IRR 30000.

Referring
to the meetings held for optimizing the price, he insisted that farmers are not
interested in increasing the prices annually.

Qodrat
Heidari, deputy director of planning for the state owned commercial company, also
pointed to the growing trend of what production, said: the prediction of the
ministry of agriculture was to produce 14 million tons of wheat in 2019 and
then it was reduced to 11 million tons and we were ready to buy that amount of
wheat however despite all the financial bottlenecks, and despite the fact that
there was money available, we bought about 8 million tons. He said the decline
in wheat purchases was due to a decrease in production and changing weather
conditions.

Heidari on
the low purchase price of wheat, also pointing out that according to the law,
the ministry of agriculture is responsible for the price-fixing, said: during
the last 10 years the purchase rate of wheat has increased every year by 15%.
But we should only consider the purchase rate increase as a measure because in
the end it will incur additional financial cost on consumers and in this case
only a price increase will not be of assistance for the farmer.