Islamic Republic might Export Wheat to Neighboring Arab Countries

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Written By Farid Shojaei

Islamic Republic might Export Wheat to Neighboring Arab Countries

Hassan Rezaeipour, Iranian economist, says local producers of wheat might start exporting their products to neighboring Arab countries in Persian Gulf rather than distrusting them in the domestic markets. He believes the recent volatilities in local exchange markets is the main reason for this job. Iranian Rial has lost major parts of its value against foreign currencies.

“Currently the price of wheat in overseas is more expensive than Iran’s local markets. This has made producers to export their products to other countries such as Iraq and Saudi Arabia. By doing this, they will be able to multiply their profits. I think the Iranian government must take action in this regard as soon as possible.” Hassan Rezaeipour told Pars Herald.

Rezaeipour also went on to elaborate the roots of this problem. “Always, there are some issues in supply and demand process of local markets. This has made the price of wheat cheaper in Iran in compare to other countries. Although Iran is currently importing wheat from Pakistan and India, but the local farmers and exporters might sell out their products in Arab countries.”

According to media reports, Iranian wheat is being smuggled to Iraq. At this time, Iranian government pays 6500 Rial per kilogram of wheat to farmers. But Iraqi businessmen pay 10000 Rial for the same product.

It’s worth mention that Iran’s domestic wheat consumption 8 million tons annually. Studies show that Iranian consumes about 8.7 kilos of bread a month and some 104 kilos a year.