Iran resumes US wheat imports after 27-year pause
Washington, 21 August (IranVNC)—Iran began importing a large quantity of American wheat this summer after a 27-year hiatus, the Wall Street Journal reports. The deals, signed earlier this summer, are valued at an estimated $350 million.
By: IranVNC
Published: Thursday, August 21, 2008
11:00GMT—7:00AM/EST
IRAN – US – WHEAT – IMPORTS
Washington, 21 August (IranVNC)—Iran began importing a large quantity of American wheat this summer after a 27-year hiatus, the Wall Street Journal [WSJ] reports. The deals, signed earlier this summer, are valued at an estimated $350 million.
According to the report, Iran has purchased more than one million tons of hard red winter wheat from the U.S. since the 2008-2009 marketing year began on 1 June. This “very large amount”, as Bill Nelson of Wachovia Securities describes it, represents at least three to four percent of US wheat exports.
The high level of imports comes as Iran is this year facing “the worst drought in 40 years,” an Iranian deputy energy minister said earlier this year. Rain levels have been 44% below average, according to the WSJ.
The US Department of Agriculture [USDA] forecasts that Iran will produce 10 million tons of wheat this year, five million tons less than the year before, and will import 4.5 million tons, up from 200,000 tons in 2007-08.
The last time Iran imported wheat from the U.S. was in the 1981-82 marketing year, when it bought 728,000 tons, according to USDA data.
Washington is locked in a dispute with Tehran over its controversial nuclear program, which the U.S. fears is being used to develop a nuclear weapon. It has tightened economic sanctions against Iran in recent months in an effort to persuade that country to halt its sensitive nuclear work.
While US laws prohibit the sale of technology, which could have military usage, to Iran, the export of agricultural goods, medicines and several other categories of goods are permitted.
Rob McInturff, a State Department spokesperson, told the WSJ that the exports show Washington’s willingness to engage with the Iranian people even as it continues sanctions against Tehran.
“We have a longstanding policy … of engaging the Iranian people on the one hand while sanctioning the Iranian government on the other,” McInturff said.
Experts say that Iran’s large purchase stems largely from necessity. Iran imported more than 5.3 million tons of wheat from Australia, Canada, the European Union and Argentina in 2001-02. But drought and poor production have limited exports from these countries this year.
“Do you think Iran would come to the U.S. if they had any place else they could buy it?” said Jerry Gidel, an analyst for North America Risk Management Services.
Last month, the Associated Press reported that US exports to Iran have increased tenfold during the Bush administration.
Source: Wall Street Journal, Associated Press, Reuters
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