Iraq is experiencing a significant wheat surplus, with a bumper harvest leading to an estimated net loss of nearly $458 million for the government, which traditionally imports large quantities of wheat. Key points include:
The country has a surplus of 1.5 million metric tons of wheat, attributed to favorable rains and government subsidies aimed at encouraging local production.
The government pays farmers over double the global market price for wheat, which, while beneficial for farmers, poses a financial burden on the state.
Critics highlight the need for better planning to balance agricultural production with available resources, questioning the rationale behind producing more than necessary.
Iraq requires between 4.5 and 5 million tons of wheat annually to meet its subsidy program’s needs.
The nation has historically been a significant agricultural region but has faced challenges from climate change, reduced river flow, and ongoing conflicts affecting farming.
As one of the most vulnerable countries to climate change, food security remains a priority, but the government is also grappling with a reduced budget for 2025 due to lower oil prices.