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Kurdish Farmers Complete Wheat Delivery, Await Payment from Iraqi Government

Gulan Media July 16, 2023 News
Kurdish Farmers Complete Wheat Delivery, Await Payment from Iraqi Government

In a successful endeavor, farmers in the Kurdistan Region have concluded the process of delivering wheat to the grain warehouses, totaling 499,000 tons.

The distribution included 145,000 tons received in Erbil, 230,000 tons in Sulaymaniyah, and 124,000 tons in Dohuk. The Director General of Trade at the Ministry of Trade and Industry in the Kurdistan Region, Nozad Sheikh Kamel, announced today that the federal government in Baghdad has pledged to promptly release the payments owed to the farmers for the wheat delivered.

The visit of a high-level delegation from the Kurdistan Regional Government (KRG) to Baghdad on Sunday, July 16, 2023, aims to discuss the implementation of the Iraqi budget law. The primary focus of the talks will be to ensure a smooth and fair disbursement of funds to the farmers for their wheat deliveries. The visit holds significant importance as both parties seek to address crucial financial matters related to the budget and promote cooperation between the federal government and the KRG.

Nozad Sheikh Kamel, the Director General of Trade at the Ministry of Trade and Industry in the Kurdistan Region, stated in an interview with Rudaw Media Network that "the Kurdistan Region's allocated share in this year's wheat delivery process was set at 500,000 tons, and we have successfully received the entire designated quantity from the farmers in the Kurdistan Region."

The Iraqi federal government had previously designated a total of 500,000 tons of wheat for delivery by farmers in the Kurdistan Region. The allocation was divided among the provinces, with Sulaymaniyah and Halabja receiving 230,000 tons, Erbil receiving 145,000 tons, and Dohuk receiving 124,000 tons.

Although the Iraqi Ministry of Trade disbursed 68 billion dinars for wheat purchases from farmers in the Kurdistan Region until the 21st of the previous month, no further payments have been made since then. As a result, some farmers who delivered their wheat over a month ago are still awaiting their rightful payments. In response to this issue, Nozad Sheikh Kamel reassured the farmers, stating, "We have received assurances that additional funds will be disbursed soon to settle the outstanding dues."

It is noteworthy that this year's wheat production in the Kurdistan Region has exceeded the amount specified by the Iraqi federal government for delivery by farmers. As for the surplus beyond the designated quantity, Nozad Sheikh Kamel revealed that the companies Khoshnaw and Qaiwan will be responsible for procuring the additional wheat from farmers. These companies will be able to handle a combined total of 200,000 tons.

The federal government has established a price of 850,000 dinars per ton of wheat without considering the quality classification. However, the aforementioned companies have announced that they will procure wheat based on quality classification. They will pay 700,000 dinars per ton for wheat of the first grade and 650,000 dinars per ton for wheat of the second grade. This discrepancy in payment has caused frustration and discontent among the farmers.

As discussions continue between the KRG delegation and officials from the federal government in Baghdad, the outcome of these talks will significantly impact the financial landscape for farmers in the Kurdistan Region. The prompt disbursement of payments owed to the farmers for their wheat deliveries will be instrumental in supporting their livelihoods and fostering a cooperative relationship between the federal government and the KRG.

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