Rewritten Title: Political Stalemate Over Wheat Pricing and Farmer Payments Sparks Concerns for Iran’s Agricultural Output
Article:
A Looming Challenge for National Food Security
A critical dialogue is unfolding between Iranian farmer unions and state officials, centering on the finalization of wheat prices and the settlement of farmer dues. While government representatives, including the Minister of Agriculture and the Head of the Planning and Budget Organization, have recently asserted that all wheat farmer claims have been fully settled, union leaders present a contrasting narrative, pointing to unresolved financial issues and strategic delays in price-setting.
This ongoing discussion highlights the complex political and economic balancing act in managing the nation’s strategic agricultural sector.
Unsettled Accounts and a New Insurance Policy
At the heart of the dispute is a remaining 2-3% of payments withheld from farmers who sold their wheat to the state trading company. Officials state this deduction is for a mandatory agricultural insurance program. However, Ataollah Hashemi, Head of the National Foundation of Wheat Farmers, contends that the insurance decision was made after the initial pricing agreements.
“This issue is addressed in the Seventh Development Plan and the Budget Law and was implemented last December, while the pricing was set in the previous Mehr month,” Hashemi stated. “The law cannot be applied retroactively. Therefore, the government must pay this remaining three percent to the farmers.”
He firmly believes the state has no alternative but to settle these accounts in full to maintain trust and operational continuity within the agricultural community.
Price Negotiations at an Impasse
Simultaneously, the crucial process of setting the guaranteed purchase price for the new harvest has reached a stalemate. Hashemi reports that while all technical examinations were completed months ago, government representatives in recent pricing council meetings have delayed a final decision.
He alleges that officials introduced a new topic of “quality wheat” purchases, a concept he says requires years of groundwork for education and promotion. “The goal of government representatives in raising such an issue is solely to delay a decision on the wheat price,” he claimed, suggesting it is a tactic to weary the farmers and their representatives.
Tangible Impacts on Production
The uncertainty is having a direct effect on the ground. A key indicator, the sale of certified seeds, has fallen by approximately 25% compared to the previous year. This decline signals a likely decrease in the cultivated area and subsequent wheat production for the current agricultural year, posing a potential challenge to national output targets.
A Firm Stance on Pricing
While government figures have reportedly suggested a price near 23,000 Tomans, farmer union representatives are holding firm. They have expressed unwillingness to accept anything less than 30,000 Tomans, with their own calculated figure standing at 32,600 Tomans.
Hashemi emphasized that this specific rate was agreed upon by government, private sector, and agricultural research institute representatives back in Khordad (May-June), based on production costs and standard farmer profit margins. He argues that given the country’s inflationary conditions, the price cannot be lower than this previously agreed-upon calculation.
Looking Ahead
With planting already underway in colder provinces, the resolution of these issues is urgent. Farmer unions have vowed not to acquiesce to the government’s proposed price this year. Hashemi pointed to wheat prices in neighboring countries like Iraq and Turkey (around 35,000 Tomans) as a regional benchmark.
He warned that without a suitable price and the full settlement of dues, farmers might follow last year’s pattern and sell a portion of their produce to livestock breeders, thereby reducing the volume of wheat entering the state’s guaranteed purchase system. The outcome of an anticipated meeting this week is now critical for determining the trajectory of this year’s harvest.