It is better for the government to allow private-sector to import wheat at a reasonable price, as it was the case in the past, which will firstly lead to the development of flour exports.

Industry and market surveys show that the country needs nearly 9 million tons of bakery wheat and more than 3 million tons of industry wheat. This amount covers only domestic consumption and can be added to Iranian wheat exports.

Given the eight million tonnes of government-bought wheat from Iranian farmers, it can be predicted that the country needs more than three million tonnes of wheat not only to offset its strategic reserves but also to meet domestic demand.

The important point is that the government does not monopolize wheat imports. The government should not allow the import of wheat only to be owned by a state-owned company. It is better for the government to allow the private sector to import common quality wheat at a reasonable price, as in the past. Flour mills also need to declare their need and buy wheat. The first consequence of the import of wheat by the private sector is the development of export of Iranian flour.

Iraq is one of the largest importers of flour in the world. It is known as the largest flour exporting market in the world, and in practice Iraq and Afghanistan occupy the first and second positions in world flour imports. Unfortunately, Turkey has a large part of the Iraqi market. Turkey’s share of the Iraqi flour market is over 90%. Turkey uses Russian wheat to grow its flour exports to Iraq, mills it and exports it to its southern neighbor. Iran has similar geopolitical conditions to Iraq, but Iran fails to increase its market share in Iraq, returning to the wrong policies in the country. The flour-making capacity in Iran is high and Iraq is a good market for Iranian flour. This opportunity should not be overlooked.