Wheat Futures Markets: A Key Tool for Scientific Management of the Grain Industry

He emphasized the importance of wheat futures markets and contract farming as scientific tools for managing the wheat industry during the National Wheat and Bread Day conference held on April 20.

resident of the Iranian Foundation of Grain Sciences and Technologies highlighted that Iran is unique in growing wheat but does not officially recognize feed wheat, and stressed that wheat purchases should be based on quality rather than quantity. Jamshidi pointed out the need for high-protein wheat to produce whole flour, noting the current weak state of wheat cultivation in Iran.

The foundation aims to reduce government intervention in the wheat and milling sectors, proposing subsidy reforms to target end consumers instead. Despite large government subsidies and extensive regulatory oversight, dissatisfaction remains, making liberalization a preferred approach.

Jamshidi also noted that while many commodities in Iran have faced crises over recent decades, the bread supply chain has remained stable due to active cooperation among farmers, millers, and bakers. He concluded that futures markets and contract farming enable better planning for farmers and help avoid costly last-minute decisions.