Page 29 - AA 2023 Year Book Website

Iraq

some imports of barley are likely to oc-
cur during the current marketing year.
Faced with a higher food import bill,
in June 2022, the Iraqi parliament passed
the Emergency Law for Food Security
and Development which allows the gov-
ernment to expand food subsidies and to
access public funds to import food items,
in particular wheat. Overall, the law al-
located IQD 25 trillion (USD 17 billion)
to purchase staple food commodities,
gas, electricity and to support salaries
of public servants. About IQD 5 trillion
(USD 3.4 billion) was allocated to MOT
for the purchases of wheat.
After updating quality specifications
for imports and payment terms, the im-
port tenders failed to secure adequate
shipments and the country has moved to
negotiate direct contracts for imports of
wheat and rice.
High food import bill
cushioned by oil revenues
cent. Similarly, fertilizer subsidies have eas was confirmed. The affected farm-
decreased. To compensate farmers for ers continue to consider reducing the Although the country’s food import bill
lower subsidies and currency devalua- size of their herds, selling some animals has increased in 2022 reflecting higher
tion, during the 2022 wheat procurement in order to improve their cash flow and international food commodity prices, the
season, the Ministry of Trade (MOT) in be able to feed the remaining livestock. country benefited from higher interna-
March 2022 increased the procurement Some movement of livestock is likely to tional oil prices to offset the increases.
price from IQD 560 000/tonne (equiva- occur towards central and southern ar- Oil revenues account for over 90 percent
lent to USD 386/tonne) to IQD 750 000/ eas where the availability of water has of total State revenues and they are cru-
tonne (equivalent to USD 510/tonne) and, improved with ample rains, compared to cial to determine the government’s abil-
in May 2022, to IQD 850 000/tonne (USD the northern parts of the country. ity to pay pensions and salaries of public
578/tonne). In 2022, in an effort to rebuilt sector employees. In 2022, oil export rev-
domestic stocks, MOT prices were ap- Import requirements enues reached a record level of USD 115
plied to all locally produced wheat and increasing billion, mostly on the account of elevated
not only to the production of farmers fol- crude oil prices. After a year of political
lowing the national annual agricultural Cereal import requirements in the stalemate following the elections in Oc-
plan, as it was the case in the past. Sup- 2022/23 marketing year (July/June) are tober 2021, in late October 2022 a gov-
ported by high procurement prices, the forecast at an above average level of ernment was formed, allowing formula-
MOT purchased about 2.5 million tonnes 5.3 million tonnes, including 3.2 million tion and adoption of the 2023 budget.
of wheat locally in 2022, about one half of tonnes of wheat (imported mostly as In the second half of 2022, retail prices
the amount purchased in 2020. flour). Overall, the 2022/23 forecast ce- of several food items stabilized follow-
Livelihoods of livestock producers real import requirement is about 6 per- ing the rapid increase that occurred in
are likely to be severely affected by cent higher than in the previous year. March 2022 due to general uncertainly
the decline in barley production and Although the country usually does not on global markets which led to localized
degradation of rangelands. Feed prices import barley via official channels, it is protests. The annual food price inflation
have been increasing since 2021, when reported that some quantities are smug- between August and October 2022 was
widespread crop failure in northern ar- gled across the borders. To compensate about 6 percent, slightly below the 8 per-
for the decimated domestic harvest, cent recorded earlier in the year.

SUSTAINABLE DEVELOPMENT STRATEGIES TO

TRANSFORM IRAQ’S TOMATO AND POULTRY SECTORS

H. E. Mohammed Kareem Al Kha- Consumer demand for Iraqi poultry tors exert significant potential for value
faji, Minister of Agriculture, officially and tomato products is on the rise, par- chain development, value addition and
launched, on behalf of the Government ticularly in the domestic market. Togeth- commercialization.
of Iraq, the country’s Poultry and Toma- er, these value chains hold a projected
to Sustainable Development Strategies import demand of over $1.7 billion com- Enhancing Iraq’s competitiveness in
(2022-2026). bined by 2025. Furthermore, both sec- these value chains contributes to na-

Arab Agriculture 2023 27