Azerbaijan, Baku, May 29/ Trend F.Milad/
The research committee of the Iranian parliament (Majlis) said in a report that a surge is expected to be in importing wheat considering the current purchasing price of wheat from domestic farmers.
"Supply and demand determines prices in international markets. But, some other factors are involved in Iran's economy, which affect prices on certain products, such as wheat," the report said, Mehr News Agency reported.
"The subsidy reform plan emphasizes maintaining the payment of cash subsidies to the agriculture sector and support farmers through providing them with ex-gratia payments or low-cost loans, but the plan had indirect negative effects on production, transportation and distribution costs."
The subsidy reform plan, which was launched in December 2010, allows the Iranian government to gradually slash subsidies on fuel, electricity, and certain goods over the course of five years, with low-income families being compensated with direct cash handouts.
Iran's wheat output is planned to reach 14 million tons in the current calendar year, which ends on March 20, 2013, Mehr News Agency quoted a report made by the ministry of agriculture as saying on Sunday.
The UN Food and Agriculture Organization (FAO) placed Iran as the 12th leading producer of wheat in the world, with an average production of 14 million tons in 2011.
Among the major producers of wheat, the European Union (EU) with 138 million tons and China with 117.9 million tons are set to be the top two producers of wheat this year.
India with an estimated wheat production of 86.9 million tons and the US with 54.4 million tons ranked third and fourth on the list of the leading wheat producers of 2011, press TV reported.