Iraq's Grain Board sets local wheat purchase prices for 2018 season

Iraq's Grain Board will pay the country's farmers 420,000-560,000 Iraqi dinars ($354-$472) per tonne of local wheat during the 2018 harvest, unchanged from last year, the state buyer said on Tuesday. Setting three grades for the local wheat harvest, the Grain Board set a price of 560,000 Iraqi dinars per tonne for "first grade quality" locally produced wheat, while 480,000 Iraqi dinars will be paid per tonne of second grade wheat crops.
The lowest quality grade of local wheat would be worth 420,000 Iraqi dinars per tonne, it said in a statement. The board imports millions of tonnes of wheat and rice annually as millions of Iraqis depend on the government's extensive subsidised food system, which is managed by the trade ministry. Iraq's new Grain Board chief said he expected local wheat production of no less than 2.5 million tonnes in the 2018 season, an improvement over previous forecasts thanks to recent rainfall. Iraq needs an annual wheat supply of between 4.5 million and five million tonnes, implying an import gap of around two million tonnes for the year.