Miller Magazine Issue: 143 November 2021

28 MILLER / november 2021 NEWS The United States Department of Agriculture (USDA) has raised forecast for Iran’s 2021/22 wheat imports sharply by 2.0 million tons in October to 4.5 million tons—the country’s largest import volume in 7 years. The projected surge in imports is a response to tight- ening domestic supplies. Iran wheat consumption has remained relative- ly stable as stock levels slid in recent years. More- over, despite the government’s investment in improv- ing wheat harvests, production is estimated to drop 10 percent from the previous marketing year due to drought conditions impacting yield. According to the Tehran Times, the Iranian govern- ment, which procures wheat at an established price, purchased 4.4 million tons of wheat from farmers be- tween March and August 2021—representing about 3 months of consumption and a third of the domes- tic crop. The procurement price recently jumped to 75,000 rials/kilogram (approximately $1.781 ) com- pared to 25,000 rials/kilogram last year, reflecting the country’s tightening wheat supplies and demand for additional wheat procurement. In order to satisfy domestic demand, the govern- ment is therefore forced to import wheat from inter- national sources. Iran’s state Government Trading Corporation (GTC) has been actively tendering for international wheat this year following years of min- imal tender activity. While details of its purchases are undisclosed, GTC has bought at least 520,000 tons of wheat since the beginning of the marketing year (Apr-Mar). Iran wheat imports are primarily sourced from Rus- sia. According to Iran customs data, imports from Rus- sia were over 1.0 million tons in the 2020/21 marketing year. Trade with Russia is anticipated to expand this year with growing import demand. In June, the Iranian Ambassador to Russia stated that imports of Russian wheat could double this marketing year. Since April, shipments of Russian wheat to Iran have already re- portedly reached 3.0 million tons. Iran wheat imports surge with tightening domestic supplies