Jordan government commits US$196M to wheat subsidies amid global market volatility

JORDAN – The Jordanian government has earmarked approximately JD139 million (US$196 million) for wheat subsidies in 2025 in a move to bolster food security and protect citizens from fluctuating international commodity prices.

This allocation, announced by the Ministry of Industry, Trade and Supply, underscores the administration’s ongoing commitment to stabilizing bread prices and alleviating economic pressures on households.

According to Ministry spokesperson Yanal Barmawi, in a statement to the Jordan News Agency (Petra), the Cabinet has endorsed the continuation of direct cash assistance to bakeries, while locking in fixed bread prices for the coming year. This policy extension is designed to insulate consumers from the ripple effects of escalating global wheat and barley costs on local production.

“Prioritizing support for this essential commodity aligns with the Economic Modernisation Vision, which places a strong emphasis on food security and price stability,” Barmawi emphasized.

Further bolstering these efforts, the government launched its grain purchase program for 2025, setting subsidised prices at JD420 (US$592) per ton for wheat and JD370 (US$522) per ton for barley, with the public treasury absorbing the costs.

As of mid-2025, Jordan’s wheat stockpiles were reported to cover 10.4 months of domestic consumption, while barley reserves suffice for 8.5 months, according to the Food and Agriculture Organization’s (FAO) Global Information and Early Warning System (GIEWS).

However, global wheat market volatility in 2025, characterized by oversupply, shifting trade patterns, and downward pressure on prices due to factors like reduced output forecasts in key producers such as Russia and Ukraine, affected the imports, leading to higher local prices.

The ministry is executing a multifaceted plan to enhance national stockpiles by engaging multiple international suppliers. In line with this, Jordan has been active in the global grain market throughout 2025.

Notable actions include the recent tenders for up to 120,000 tons of wheat, and another for 120,000 tons of animal feed barley in late August.

Earlier in the year, combined tenders for 240,000 tons of wheat and barley were launched to fortify food security. However, not all procurements proceeded smoothly, a September tender for 120,000 tons of milling wheat was canceled, illustrating the challenges posed by market dynamics.

Domestically, Jordan’s wheat production remains minimal, forecasted at around 30,000 metric tons for the 2025/2026 marketing year by the U.S. Department of Agriculture’s Foreign Agricultural Service (FAS).

To bridge the gap, imports are projected to reach 1.15 to 1.2 million metric tons for wheat and 1.1 million metric tons for barley, supporting a consumption estimate of 1.065 million metric tons of wheat grain equivalent.

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