Government Wheat Pricing Sparks Farmer Outcry In Syria

The government has set this year’s wheat price significantly lower than last year’s rate. On June 13, 2023, the Ministry of Economy established the price for a ton of hard wheat at $330, marking a sharp decrease.

This year’s price is the lowest among various Syrian governing bodies. The Syrian Salvation Government (SSG), which operates in Idlib, northern Hama, and parts of western Aleppo, has set the price at $310 per ton. The regime’s government offers $360 per ton, while the Autonomous Administration of North and East Syria (AANES) also set their price at $310 per ton.

The lower price has raised concerns about the financial viability for farmers, who face costs not covered by the current pricing. Without assurances from the Interim Government to secure even minimal profits, there are growing questions about the neglect of this critical crop and the implications for both farmers and the region.

Interim Government’s Pricing Controversy

The Interim Government based this year’s pricing on a decision from September 2023, setting the price for first-grade soft wheat at $220 per ton, second-grade at $215 per ton, and third-grade at $210 per ton. They also offered bonuses of $5 per ton in Tal Abyad and Ras al-Ain, and $25 per ton in northern and eastern Aleppo, without a clear rationale for these variations. Farmers have criticized this as unfair and detrimental to their livelihoods.

In the 2023 harvest season, the Interim Government set the price for first-grade pure hard wheat at $330 per ton. However, farmers struggled to sell pure hard wheat for more than $220 per ton and soft wheat for $150 per ton. With production estimates of 200,000 to 250,000 tons in Tal Abyad and Ras al-Ain, and 40,000 tons in northern and eastern Aleppo, farmers faced crop accumulation and monopolization by traders due to insufficient government purchases and storage issues.

Rising Costs and Financial Constraints

Farmer Muhammad Younis from Kal Jibrin, Azaz countryside, highlighted that the government’s price is insufficient to cover the high production costs, including seeds, fertilizers, fuel, and harvesting. The Interim Government sold wheat seeds at $350 per ton, further straining farmers financially. This pricing discourages farmers from selling to the government, opting instead to sell to traders offering higher prices.

Minister of Economy Abdel Hakim al-Masri cited the government’s limited financial capability as the reason for setting the purchase price at $220, aligning with last year’s rate. He warned that raising the price would strain the Grain Corporation and increase bread prices, adding to transportation costs from Tal Abyad and Ras al-Ain to Aleppo.

Grain Corporation Director Hassan al-Muhammad acknowledged the low price’s impact on farmers, attributing it to insufficient support for wheat purchases. He mentioned that the Syria Recovery Trust Fund’s support for wheat has nearly ceased since early 2024, affecting wheat supplies while focusing on bakery needs.

Shift Towards Alternative Crops

Agricultural engineer Fawaz Khanji emphasized wheat’s critical role in food security. He attributed the Interim Government’s actions to financial pressures and limited resources. Khanji warned that low wheat prices and reduced production could drive farmers to alternative, more profitable crops like medicinal plants and forage crops. He stressed the need for balanced policies to support farmers materially and technically.

Declining Production Since 2011

According to the Food and Agriculture Organization (FAO), Syria’s 2022 wheat crop amounted to about one million tons, a 75% drop from pre-2011 levels. Average production from 1990 to 2010 exceeded four million tons, peaking at 4.9 million tons in 2006. FAO’s representative in Syria, Mike Robson, attributed the decline to climate change, economic stagnation, and ongoing security issues, severely impacting grain production.

Wheat Pricing and Food Security

Political economy researcher Yahya al-Sayed Omar criticized the lack of strategic consideration in wheat pricing by Syrian authorities, resulting in low prices across all control areas. This trend forces farmers to accept unfair prices, impacting their livelihoods and potentially leading them to abandon farming.

Al-Sayed Omar warned that neglecting wheat could reduce cultivation areas, decrease production, and drive farmers away from agriculture, exacerbating unemployment and food security risks. He suggested that controlling governments might be pushing international institutions to fund wheat purchases, a policy he deemed flawed and potentially harmful to farmers and the broader community.