COUNTRY FOCUS: Iraq – comprehensive look at production and milling trends
Agriculture contributes approximately 3.4% to Iraq‘s GDP and employs 8.25% of the workforce, with grains forming the backbone of rural livelihoods.
Iraq’s agricultural sector plays a critical role in ensuring food security, particularly through grain production, which supports both domestic consumption and the Public Distribution System (PDS). Despite challenges such as water scarcity, climate change, and historical conflicts, Iraq has made notable strides in grain self-sufficiency, especially in wheat. Agriculture contributes approximately 3.4% to Iraq’s GDP and employs 8.25% of the workforce, with grains forming the backbone of rural livelihoods.
Iraq grain commodity production 2023-2025 (1000 Tons)
Source: Faostat data
Wheat remains Iraq’s paramount strategic cereal crop, accounting for about 70% of total cereal production. It is cultivated across both rain-fed areas in the northern regions, including Ninawa, Kirkuk, Salah Al Din, Anbar, and the Kurdistan Region of Iraq (KRI), and irrigated zones in the central and southern (C&S) regions reliant on the Tigris and Euphrates rivers. Planting typically occurs in October and November, with harvesting from April to June.
Iraq’s wheat is primarily used for the national Public Distribution System (PDS), a food rationing program that provides essential commodities, including flour, to millions of Iraqis. The secure reserve also supports the government’s emergency stockpile, designed to stabilize the food supply during political, economic, or climate-related shocks.
The government supports wheat through subsidized inputs, including seeds from entities like the Mesopotamia State Seed Company and the Iraqi Seed Company. Locally produced wheat is procured by the Ministry of Trade (MOT) at above-international prices for milling and distribution via the PDS, which requires 5.2 MMT annually to supply flour to 42 million people.
In the 2024-2025 marketing year (MY), Iraq achieved self-sufficiency in wheat strategic reserve with a record harvest of 6.3 million metric tons (MMT), a 21% increase from the previous year. This performance was attributed to improved rainfall in northern rain-fed provinces, particularly Nineveh, Kirkuk, and Salah al-Din, and successful irrigation management in central and southern regions that rely heavily on the Tigris and Euphrates river systems.
Wheat production and imports in Iraq 2021-2025 (1,000 MT)
Source: FAO/GIEWS Iraq Country Briefs
Despite the bumper year, the Food and Agriculture Organization (FAO) estimates 2025 production at 4.5 MMT, necessitating imports of about 2.4 MMT to meet domestic needs. The figure, however, differs from Director General Haider Nour Al-Karaawi, who announced that the total quantity of locally sourced wheat received by the end of the season on July 19 stood at 5.119 million metric tons. According to the Minister, when added to the 1.4 million tons carried over from the 2024 season, Iraq’s strategic wheat reserve stood at approximately 6.5 million tons, enough to cover the country’s consumption needs for 16 months.
National average wheat flour and rice prices were stable in August 2025 compared to the previous month but remained about 4 percent and 2.4 percent, respectively, higher than a year earlier. This reflects adequate local supply availability and the government’s annual subsidy programme, which helps keep key commodity prices stable.
The Minister also assured public flour mills that they will continue receiving allocations of locally produced wheat, ensuring a steady supply for the rationing system. For the commercial bakeries across Iraq, they prefer imported flour, mainly from Turkey and Iran, because imported flour is milled to specific Iraqi baking characteristics at competitive prices. Imported flour is estimated at roughly 1.5 million tonnes annually. As a result, even with abundant domestic wheat, the commercial flour market remains tied to regional suppliers.
Barley is a secondary grain in Iraq, primarily used as livestock feed and occasionally in poultry rations (10-15% for laying chickens, though not for broilers). Production is concentrated in rain-fed northern areas, similar to wheat.
Post forecasts for MY 2023/24 indicate barley production stood at 550,000 metric tons (TMT) on 400,000 hectares, benefiting from slightly increased rainfall, while MY 2022/23 was revised to 450 TMT. However, forecasts for the 2024/2025 marketing year indicate a substantial recovery, with projected production reaching 1.4 million metric tons, a remarkable 600 percent increase from the previous year.
The USDA attributes this potential rebound to improved weather conditions in certain subregions, enhanced irrigation practices, and government efforts to expand cultivated areas. The exact figures on harvested land and yields for these years remain provisional in available reports.
In 2023/24, Post forecasted total barley consumption at 885 TMT due to an increased consumer preference to use barley for bread. Barley flour is almost entirely imported from Turkey, with a small amount from Iran.
For the 2025/2026 season, however, Famine Early Warning Systems Network (FEWS NET) projections anticipate below-average barley yields, particularly in rain-fed northern governorates and river-dependent central and southern areas. Water reserves have plummeted from 60 billion cubic meters in 2020 to just 10 billion in 2025, exacerbated by upstream dam constructions in Turkey, Syria, and Iran, deteriorating infrastructure, and inefficient water usage in agriculture. These factors have led to government-imposed restrictions on planting, including bans on summer 2025 and winter 2025/26 cultivation in some regions to prioritize drinking water supplies. The trade in barley is usually handled by the private sector, with import licenses issued by the Ministry of Agriculture. The government is not involved in importing barley.
Corn
Corn (maize) production in Iraq is relatively minor compared to wheat and barley, with limited statistical detail available for 2025. It is not a dominant staple but supports feed and food uses in certain regions. The MOA does not provide direct subsidized corn seeds, as it is usually handled by the private sector. Corn seeds are also imported from Turkey, Slovakia, Spain and small quantities from Holland. However, the Turkish seed is more popular because of its low cost compared to other sources. Water-intensive cultivation restricts expansion, particularly amid desertification and water allocation priorities favoring wheat. Imports play a key role in meeting demand, especially for animal feed, with global trade influencing availability.
In MY 2023/24, Post estimated corn imports to reach 1.1 MMT due to increased demand for feed for both the poultry and aquaculture sector. Feed mills prefer imported corn, especially of South American origin, due to the quality, moisture rate, and low occurrence of aflatoxins.
Rice cultivation in Iraq faces significant constraints due to water shortages, making it a vulnerable commodity. Planting occurs between June and July, primarily in irrigated southern provinces like Najaf.
In 2023, the government restricted rice cultivation, citing a severe water crisis and a sharp decline in water inflows. The kingdom only allowed 5 to 10 square kilometers annually, solely for seed extraction. In 2025, however, Deputy Minister of Agriculture Mahdi Sahar Al-Jubouri said the country had resumed rice cultivation after a two-year hiatus, earmarked 150 square kilometres (58 square miles) for rice growing, and forecast a yield of 150,000 tonnes. This was attributed to the abundance of water due to heavy winter rainfall and the promise of more water flows from Turkiye.
Rice Production in Iraq 2014-2024
Source: USDA 2023 report
Despite the resumption of rice farming, Iraq imported approximately 1.25 million tons of rice in 2024 to meet domestic demand. In 2025, consumption remains steady, with retail prices in August reported at about 2.4% higher than the previous year but stable month-to-month due to subsidies. Imports cover shortfalls, as domestic output meets only a fraction of needs, estimated at around 1-2 MMT milled equivalent annually in prior years. According to USA Rice, Iraq continues to purchase rice from the U.S., with sales reaching 220,000 tonnes for 2025. In 2024, the USDA reported that in 2024, Iraq imported US$85.5 million worth (131,501 metric tons) of rice from the U.S., marking a 61% increase compared to the ten-year average. The demand for high-quality U.S. rice remains strong, as Iraq imports nearly 90% of its rice needs.
Millet is not a primary grain in Iraq’s agricultural portfolio, with production data scarce for 2025. It is occasionally grown in marginal, rain-fed areas for subsistence or feed, but it does not feature prominently in national statistics or trade reports.
Given Iraq’s focus on wheat and barley, millet output is negligible. No significant governmental support or import trends are noted, indicating its minor role in the grain sector.
Grain Storage
Iraq has invested substantially in grain storage to accommodate rising production and ensure food security. Strategic wheat reserves exceeded 5.5 MMT in 2025, sufficient for a full year’s domestic supply and price stability amid global disruptions. The 2025 marketing season concluded with over 6.5 MMT stored.
Key developments include the groundbreaking of five 60,000-tonne silos across provinces, starting with Kirkuk, constructed by Switzerland’s Bühler Group in partnership with Egypt’s Samco Company. These facilities incorporate advanced technologies for safe storage. In the KRI, additional silos under construction will add 200,000 tonnes of capacity once operational. These initiatives address surplus from bumper harvests, such as 2024’s, and mitigate losses from inadequate infrastructure.
Milling Industry
Iraq’s milling sector comprises approximately 280 licensed flour mills, with 97% state-owned and the remainder private. The industry processes domestic wheat for the PDS and commercial markets, though it faces competition from lower-cost imports. The government of Iraq subsidizes inputs, purchases wheat from farmers at a high price, sells to millers at a lower price, and then purchases much of the flour to distribute via the PDS. The PDS was created in 1990 by the Ministry of Trade (MOT) and has continued to benefit most families in Iraq.
A landmark project is the Etihad Group’s flour mill in Babil Governorate, inaugurated in 2025 with a 4,500 tonnes per day (TPD) capacity, one of the largest in the Middle East, covering 50% of domestic demand and reducing annual imports valued at over US$750 million. .
Global wheat flour trade contracted in 2024-25, partly due to Iraq’s reduced imports following gains in self-sufficiency, but drought may increase reliance on imports from Turkey and Iran. The government subsidizes milling inputs, ensuring affordability through the PDS.
The milling industry is also supplemented by external imports. It is estimated that around 1.5 MMT of wheat flour is imported annually. Mills outside of Iraq have the capability to make wheat flour in specification to Iraqi preference at a lower cost than Iraqi mills, therefore making it difficult for Iraqi mills to compete. All imported wheat flour in Iraq is done by the private sector and sold to bakeries around the country. A significant amount of wheat flour is imported from Turkey and Iran and a small amount from Jordan and Russia.
However, as part of the National Product Protection Program, the government initiated measures to bolster local flour production by selling domestically produced wheat to public and private mills at prices competitive with imported wheat.
In addition, as part of this initiative, the Cabinet imposed a gradually increasing customs tariff on imported flour, starting at 10% from Sept. 1-Dec. 31 and increasing to 25% from Jan. 1, 2025-June 30, 2025 subject for review.
The plan also includes a 30% customs duty on imported packaged flour, effective from October 1, 2024, to discourage imports further and support domestic production.
This feature appeared in ISSUE 17 of MILLING MIDDLE EAST & AFRICA MAGAZINE. You can read this and the entire magazine HERE
