The Iranian government has announced its prices for the guaranteed purchase of basic agricultural commodities in the next harvesting season.

According to The Iran Project, based on the reports in the local media on Tuesday, the government said it will purchase wheat at a price of 205,000 rials ($0.34) per kilogram next year, up from 170,000 rials this year.

The government will buy corn and barley at a price of 135,000 rials per kilogram next year while rapeseed, soybean, sunflower and camelina have been respectively priced at 410,000 rials, 430,000, 360,000 rials and 360,000 rials per kilogram, according to a report by Fars news agency.

Iran’s ministry of agriculture (MAJ) normally announces guaranteed purchases prices for basic commodities in late summers to encourage more farming activity in the country over the year that follows.  

Experts say favorable prices announced last year in Iran was a reason for bumper harvest of certain crops this year.

MAJ figures released over the weekend showed that wheat purchases from domestic farmers had reached nearly 12 million metric tons this year, up 1.62 million mt or 16% from last year’s purchases.

The government budget allocated to wheat purchases this year has reached a whopping figure of 2,104 trillion rials ($3.56 billion).