(Persia Digest) – The IR of Iran, Russia, and Kazakhstan have signed a Memorandum of Understanding for a trilateral trade in wheat.
Iran has signed the MoU with the aim of becoming self-sufficient in wheat production and benefiting from its geographical location to become a trading hub for wheat and flour exports in the region.
The MoU can be a step in resolving reduced capacity in plants and creating jobs. The Deputy for the Development of Commerce and Industries at Iran’s Ministry of Agriculture, Russian Deputy Minister of Agriculture, and Head of Exports for the National company Food Contract Corporation JSC of Kazakhstan pre-signed the MoU at the Iranian Embassy in Moscow.
The ministers of agriculture for the three countries will soon be signing the finalized contract.
Based on this MoU, the processing and re-export of flour from Iran is expected to increase and the advantages of Iran as a transit route for the swap of wheat to be exploited and optimized.
The trilateral agreement also provides for credit lines to be extended to Iranian companies by Russia and Kazakhstan, the creation of new regional markets, and the development of existing wheat and flour markets. With the implementation of the agreement, it is forecast that Iran’s share of the regional flour market will increase.
Persia Digest reports that Iran’s move towards self-sufficiency in wheat production will be sustained this year.