Iraq considers Russian wheat imports

Published 2018-11-13, 05:05 a/m
Iraq considers Russian wheat imports

* Iraq among few non-buyers of Black Sea wheat in Middle East

* New Iraq trade minister signals interest in Russian wheat

* Black sea sellers gain market share in Middle East, N.Africa

By Moayed Kenany and Olga Popova

BAGHDAD/MOSCOW, Nov 13 (Reuters) - Iraq, a major Middle East grain buyer traditionally reliant on U.S. imports, wants to allow Russian origin wheat in its state buying tenders.

Trade Minister Mohammed Hashim al-Aani will send representatives to Russia to study its wheat quality and its suitability for use in Iraq's massive food rationing programme.

"The ministry will send a delegation to Russia to study the mechanisms of wheat production ... in order to paint a picture of its quality and types and how suitable it is for use within the subsidy card system," he said in a statement issued late on Monday.

The minister made the comments after a meeting with the Russian ambassador to Iraq.

The delegation is expected to visit Russia before the end of the year, a spokeswoman at agriculture watchdog Rosselkhoznadzor confirmed on Tuesday.

Iraq needs an annual wheat supply of between 4.5 million and five million tonnes, and has an import gap of around two million tonnes a year.

The country spends billions of dollars annually on a Saddam-era programme for food rationing, the Public Distribution System, to supply subsidised bread and other essential foods to its population.

Iraq's grain board imports its wheat mostly from the United States, Australia and Canada. It is one of the few markets in the Middle East, alongside Saudi Arabia, that does not import from Russia, one of the world's largest grain exporters.

Black Sea sellers have provided stiff competition to the United States in North Africa and the Middle East and won market share in recent years.

Iraq's grain board chief told Reuters in March that Russian wheat quality may not be suitable for the production of flour for the rationing programme because of the nature of its gluten content. al-Aani, who was appointed trade minister in October and oversees the grain board, said Iraq wants Russia to participate in its state tenders.

The grain board regularly announces international purchasing tenders to import wheat for the food rationing programme, which covers flour, cooking oil, rice, sugar and baby milk formula and was created in 1991 to combat U.N. economic sanctions.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.