- Domestic support: Iraq set a wheat procurement price of about $534/MT under the national agricultural plan and $381/MT for out-of-plan purchases for the 2025/26 marketing year.
- Yield thresholds: New yield standards by irrigation type (9,000 kg/ha modern, 7,500 kg/ha conventional, 3,000 kg/ha rainfed) will influence farmer eligibility for government procurement.
- Seed investment: The government will buy 100,000 tons of high-quality wheat seed at $534/MT to bolster production in the next planting season.
- Global trade impact: Policy is neutral to slightly bearish for Black Sea wheat, potentially trimming Iraq’s import needs but keeping it a periodic buyer if yields disappoint.
Iraq Wheat Procurement Policy for 2025/26
The Iraqi Council of Ministers has approved official wheat procurement prices for the 2025/26 marketing year, aiming to support domestic production while managing import dependence. Wheat delivered under the national agricultural plan will be purchased at 700,000 Iraqi dinars per ton (approximately $534/MT). Purchases outside the national plan will receive 500,000 dinars per ton (around $381/MT), creating a price differential designed to incentivize participation in the government program.
| Category | Price (IQD/MT) | Price (USD/MT, approx.) |
|---|---|---|
| Wheat under national agricultural plan | 700,000 | $534 |
| Wheat outside national agricultural plan | 500,000 | $381 |
| High-quality wheat seed procurement | 700,000 | $534 |
Yield Standards by Irrigation Method
Alongside pricing, the government has introduced minimum yield standards tied to irrigation technology. Farms using modern irrigation systems must reach 900 kg per denum (9,000 kg/ha), while conventionally irrigated land must achieve 750 kg per denum (7,500 kg/ha). Rainfed areas face a lower bar at 300 kg per denum (3,000 kg/ha), reflecting higher weather-related risk and lower productivity potential.
| Irrigation Type | Yield Requirement (kg/denum) | Yield Requirement (kg/ha) |
|---|---|---|
| Modern irrigation | 900 | 9,000 |
| Conventional irrigation | 750 | 7,500 |
| Rainfed agriculture | 300 | 3,000 |
Seed Procurement and Production Outlook
To underpin production for the next planting season, Iraq will procure 100,000 tons of high-quality wheat seed at the same 700,000 dinars per ton ($534/MT) price level used for in-plan grain purchases. This measure is intended to boost both yield and quality, supporting the government’s broader objective of strengthening domestic supply and partially offsetting the need for imports.
Implications for Black Sea Wheat
For global markets, the policy stance is neutral to slightly bearish for Black Sea wheat exporters. The support price is strong enough to encourage local plantings but not so elevated as to materially shift global trade flows on its own. If Iraq achieves its targeted yields, import demand from traditional Black Sea suppliers could ease modestly. However, any weather-related shortfalls or underperformance relative to the new yield standards could still prompt supplementary import tenders in Q3 2025, keeping Iraq an important but periodic buyer in international markets.
Source: Market Data
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