IRAQ—The Iraqi government has initiated measures to bolster local flour production by selling domestically produced wheat to public and private mills at prices competitive with imported wheat.
This move is part of a broader strategy to enhance national food security and reduce reliance on foreign imports.
The government’s decision is tied to the National Product Protection Program, which aims to protect and promote locally produced goods.
As part of this initiative, the Cabinet has announced a new tariff system on imported flour. Starting September 1, 2024, a 10% customs tariff will be imposed on imported flour, with this rate increasing to 25% by January 1, 2025.
These tariffs will be reassessed after six months to determine their effectiveness and potential adjustments.
Additionally, the government has set a price of 450,000 IQD (US$343) per ton for local wheat, which will be used exclusively to produce zero flour, a finely milled flour with low ash content.
This flour will be distributed to various ministries and social welfare programs under new contracts, ensuring that critical sectors such as Defense, Interior, Trade, Justice, and Labor and Social Affairs are supplied with locally produced flour.
The plan also includes a 30% customs duty on imported packaged flour, effective from October 1, 2024, to discourage imports further and support domestic production.
The move comes as the kingdom is recovering from severe drought and water shortages, which had forced it to import large quantities of wheat to meet its annual demand of 4.5 to 5 million tons.
Recently, the Iraqi Ministry of Trade announced a landmark achievement in the country’s agricultural history with the purchase of 6.302 million tons of local wheat, the highest quantity ever recorded.
As of July 6, Iraq had already acquired 5.9 million tons of local wheat since the beginning of the current harvest season in April.
Haider Nouri Al-Karaawi, Director General of the Iraqi General Grain Trading Company, projected that the final volume of wheat purchases for the season would reach approximately 6.3 million tons.
The Iraqi Ministry of Trade highlighted that this achievement aligns with its goals for the 2024 wheat marketing season, emphasizing that the substantial quantities of wheat procured from local farmers are pivotal in achieving self-sufficiency in food security.
This accomplishment is a testament to the success of the ministry’s agricultural and trade policies, which focus on promoting local production and reducing reliance on imports.
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