Syria orders agricultural bank to settle wheat payment arrears within 15–20 working days

Syria’s Agricultural Cooperative Bank has set deadlines for settling outstanding payments to farmers for wheat delivered to the state. Payments must be made in full in most of the specified governorates, while settlements in Deir ez-Zor and Aleppo must be completed within 15 and 20 working days, respectively.

Under a new circular issued on October 21, the bank’s branches in Deir ez-Zor must pay farmers around 200 mln Syrian pounds per day (approximately $1.42 mln), with the amount subject to increase. In Aleppo, daily payments are set at around 300 mln pounds (about $2.13 mln), also subject to increase. In Hasakah and Raqqa, farmers owed up to 5 mln pounds (about $35,500) must receive their payments in full, while others will be paid in two installments.

Farmers had previously complained about delays in payments for wheat delivered to the state after the end of the previous season. The delays left them accumulating debts and struggling to purchase inputs for the next planting season. The government attributed the delays to cash shortages and difficulties related to printing and transporting new banknotes.

Delayed payments risk reducing wheat planting areas, as farmers may lack the funds needed to purchase seeds, fertilizers, fuel and other essential inputs without receiving payment for their previous crop. The issue is particularly important ahead of the new planting season, when farmers need to cover production costs.

Syria set this season’s wheat procurement price at 46,000 Syrian pounds per ton (approximately $325). The presidential administration also introduced a bonus of 9,000 pounds per ton (about $63.50) for farmers delivering their crops to state grain collection centers. However, previous payment delays highlighted difficulties in settling accounts for grain already purchased.

Tags: wheat, Syria