Discussing the announcement of the ministry of agriculture on the purchase of guaranteed strategic agricultural products, it was announced that the outlines of purchase of wheat this year has been approved in line with the ministry’s proposal, not considering the 5% increase requested by the ministry. 

Over the past few years there have been delays by the government in announcing purchase rates at its legal time, which have prevented wheat farmers from planning the next crop year. On the other hand, the fixed rates were not satisfactory to the farmers. The farmers protest was raised at the secretariat of the government and private sector dialogue council, and was discussed at a meeting attended by activists in the area and government officials in this regard, Mohammad Hasan Talati, head of the Fars Province Grain Association, explained: the problem with the guaranteed purchase price is that the stated cost does not include production costs. For example the price of machinery and fertilizer used in production has doubled which is not taken into account.

He added that the estimated price of the cereal association for the past year was IRR 20, 400 which is IRR 20,700-20,800 per kilo this year taking into account the 40% inflation.

Mohammad Bazargan, a senior adviser to Iran’s agricultural trade union, said: “In the trade system we have studied the factors affecting wheat prices and we have reached the rate IRR 28,680.”

Ismail Esfandiaripoor, wheat project leader at the ministry of agriculture stated: As Wheat Project Leader we agree with the farmers, but we need to consider the fundamental and expert considerations. The main problem is that the government wants to make bread cheap.

He added: there is no record in the agricultural culture of Iran that the price of wheat is lower than barley but this year it was reversed. This year we didn’t expect production to be lower than last year but this was not materialized (due to the rains), Ministry of Agriculture announced the price on July 20^th and announced this to Mr. Nobakht by a letter indicating the 15% increase, but this was not approved by the Economic Council.

Mahmoud Hoseini, deputy head of industry and mining affairs at the National Budget Planning Organization, who represented the secretariat of the Economic Council, said at the meeting: Pricing policy has several objectives, including production guarantees, incentives for farmers to produce, reduce market risk from production and farmers’ subsistence.

 Darvishani said the price announced by the Economic Council is based on the cost the farmer pays in cash .

He finally announced the approval of the purchase price in accordance with the Ministry of Agriculture’s initial proposal.

Subsequently, they discussed issues related to the distribution of fuel to the agricultural fleet, which due to numerous comments, was planned by the secretariat to conduct further studies and if necessary hold a further decision making meeting.