Iraq declares self-sufficiency in wheat
Iraq has achieved wheat self-sufficiency, with over 5.5 million tons in strategic reserves, enough for one year’s domestic demand. Improved rainfall and high government purchase prices drove a surplus of 1.5 million tons, despite past challenges like water shortages. The government aims to stabilize flour prices, though surplus stock has led to losses of around \$500 million.
Iraq’s Minister of Trade, Atheer Al-Ghurairy, announced on Saturday that the country has achieved self-sufficiency in wheat production. The statement was made during a field visit to Anbar province to oversee the grain purchasing process from farmers, as reported by the Iraqi News Agency (INA).
A Reuters report from October highlighted that Iraq is losing approximately $500 million due to a surplus of 1.5 million tons of wheat, driven by better-than-expected rainfall and significant government funding. To boost production in often arid conditions, the government pays farmers more than double the global market price.
Haider Nouri, Director of Iraq’s General Company for Grain Trade, stated that the country’s strategic wheat reserves exceed 5.5 million tons, sufficient to meet domestic demand for a year, ensuring stable flour prices amid potential global crises.
Iraq was self-sufficient in wheat for three years before the Ukraine conflict, producing 4.7 million tons in 2019, 6.2 million tons in 2020, and 4.2 million tons in 2021. However, water shortages and desertification previously forced the country to import wheat to bridge the gap.
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Source : Ukr Agro Consult
