At nearly $650 per ton

Wheat procurement from Kurdistan region farmers begins

ERBIL – Government-owned silos in the Kurdistan region began procuring wheat from farmers on June 6 after facing delays due to negotiations between the Kurdistan Regional Government (KRG) and the Iraqi federal government regarding wheat intake quotas.

In a press conference at the Erbil Silo, Haidar Nouri Al-Karawi, Director of Iraq’s Public Grain Company, announced the start of the local wheat marketing season, following Prime Minister Mohammed Shia Al-Sudani’s approval of the quantity of wheat harvest in Kurdistan.

Al-Karawi emphasized joint cooperation between the company and the Kurdistan Region in simplifying all procedures during the marketing season and ensuring prompt payment of farmers’ dues within 24 hours.

The Iraqi Ministry of Trade has decided to procure a total of 700,000 tons of wheat from farmers this year, an increase from last season’s 500,000 tons. Allocations include 282,000 tons for Sulaymaniyah, 228,000 tons for Erbil, and 189,000 tons for Duhok.

Farmers will receive 850,000 dinars ($649) per ton from the silo, significantly higher than open market prices, which range between 350,000 to 400,000 dinars per ton ($267 to $306).

Kamal Muslim, KRG’s Minister of Trade, assured that all necessary measures have been taken for the procurement process, with no anticipated issues. However, farmers must obtain clearance from their local agricultural directorate before delivering wheat to the designated silo.

While some farmers expressed concerns that the procured amount does not account for all harvested wheat, Muslim clarified that a portion is often left uncollected, with efforts underway to have the remaining wheat purchased by private sector companies.

Minister of Agriculture, Begard Talabani, initially aimed to market one million tons of wheat but settled on 700,000 tons after negotiations with the federal government. Talabani projected production quantities ranging between 1.2 to 1.5 million tons due to higher rainfall this season.