Mounds of harvested wheat lie in an open area near a collection center in the Kurdistan Region, awaiting processing or transport following new local purchase terms set by the KRG
KRG sets local wheat prices to absorb unsold harvests after federal quota cut
ERBIL — The Kurdistan Regional Government has announced new pricing and collection terms for the purchase of locally grown wheat left unsold after federal procurement limits were imposed, offering 550,000 Iraqi dinars (approximately $393) per ton for grade one wheat and 525,000 dinars (about $375) for grade two.
The KRG Ministry of Agriculture and Water Resources said in a statement that the plan was approved by the Council of Ministers based on a recommendation from the High Committee overseeing wheat procurement and marketing. The framework was developed in coordination with relevant authorities and reflects market conditions in Iraq.
Farmers wishing to sell wheat through the local program must provide proof of registration with an agricultural directorate and documentation from government-run silos confirming the amount previously sold to Baghdad and what remains in storage. The collection process is scheduled to begin on July 15 and continue for one month. Payments will be issued within two months of delivery.
The ministry said the effort is part of a broader national project to support local wheat producers and ensure market absorption of unsold harvests. Two private companies have been contracted to manage collection through silos in Khoushnaw and Qaywan.
“Wheat collection will begin on the 15th of this month,” the ministry said, adding that the unsold grain will be processed for local food production.
Earlier this year, the federal government opened its wheat procurement season for Kurdistan Region farmers on June 6. Deliveries continued through July 20, during which approximately 400,000 tons were received. However, for the 2024 season, Baghdad capped total wheat purchases from the Region at 700,000 tons.
Under the federal pricing scheme, wheat delivered in modern packaging is priced at 850,000 dinars (around $607) per ton, while wheat delivered using traditional methods is priced at 800,000 dinars (about $571) per ton.
The KRG’s move to launch a local procurement program aims to mitigate the impact of the reduced federal quota and provide an economic buffer for farmers left with unsold crops.
In Iraq, wheat is a heavily subsidized crop. The federal government sets above-market prices and purchases large quantities directly from farmers each year in an effort to support domestic production and reduce reliance on imports.