Iran to boost flour exports to Iraq through purchases of Russian and Kazakh wheat

Iran has agreed on long-term wheat purchases from Russia and Kazakhstan, a move expected to help the country expand flour exports to neighboring Iraq. Under the agreement, Iran could import up to 1 mln tons of wheat annually over the next five years, while Russia expects its wheat exports to Iran to reach 1.5 mln tons per year.

The imported wheat will be used exclusively for producing flour for export. Iran’s ban on wheat imports for domestic consumption, introduced in 2016 to support local farmers, will remain in place. Private Iranian millers are also prohibited from using domestically produced wheat for export-oriented flour production.

A trilateral memorandum signed by Iran, Russia and Kazakhstan provides a framework for cooperation in wheat trade and aims to strengthen Iran’s role as a regional hub for grain and flour exports. Iranian flour mills are currently operating at only about 50% of their production capacity.

For Russia, the agreement creates an additional export market for its wheat. Following a series of record harvests, the country has been expanding its export destinations by offering competitive prices and strengthening its presence across Middle Eastern markets.

Iran, meanwhile, aims to increase flour exports to Iraq and Afghanistan. Iraq imports around 3 mln tons of flour annually, covering nearly half of its domestic demand, with Turkey currently dominating the market. Iranian millers expect the new supply arrangement to help them expand their market share.

Tags: Iraq, Iran, Russia, wheat, flour, Afghanistan