Trade4go Summary
Iraq is taking steps to boost local wheat production and reduce reliance on imports by selling wheat to licensed mills at import prices and imposing a gradually increasing customs tariff on imported flour. This is expected to drop flour imports to a decade low in 2024-25, while wheat imports are also expected to drop as domestic production increases. The country's economy is reliant on oil and agriculture, which accounts for about 10% of GDP and employs 8.4% of the workforce. The government is heavily involved in the wheat value chain and is working to remove obstacles for local products to compete with imports. The International Grains Council (IGC) expects a decrease in wheat imports in 2024-25 as domestic production increases, and estimates that wheat production will increase to 6.3 million tonnes in 2024-25.
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Original content
Traditionally a major importer of wheat flour, Iraq is taking measures to boost its local production and reduce reliance on imports. The government has approved the local sale of wheat to licensed public and private mills at prices equivalent to the import price and imposed a gradually increasing customs tariff on imported flour. As a result, the International Grains Council (IGC) said flour imports in 2024-25 are estimated to drop to a decade low. Still, the country is expected to remain the world’s second largest importer of flour. Wheat imports also are expected to drop from last year and the five-year average as domestic production increases. Agriculture is a significant part of Iraq’s economy, accounting for about 10% of gross domestic product and employing 8.4% of the workforce. About 22% of the country’s land mass is suitable for agriculture production but only 5 million hectares are cultivated, according to the World Food Programme. A large portion of the agricultural ...