Overview

Iraq imports a significant amount of food for domestic consumption through the private and public sector.  The Ministry of Trade manages the country’s Public Distribution System (PDS), a ration card system, to directly supply food to middle and lower-income families.  In 2020, the PDS system reduced its rations from 12 to eight rations per year due to financial constraints and the lack of a budget; it has maintained that lower ration amount in 2021.  While Iraq has historically been a good market for poultry products, increasing tariffs since 2017 and a wholesale ban in 2020 has essentially closed that opportunity for now.

Opportunities

Wheat:

The primary importer of wheat is the Ministry of Trade, which must supplement domestic production with imported wheat to meet the needs of the PDS.  The private sector also imports flour (milled wheat), which is counted as wheat equivalent.  On average, 65 percent of wheat consumption is imported.  In 2019 (latest data available), domestic production reached 6.1 million tons.  Lower production is anticipated for the 2021 harvest, due to lack of rainfall at planting time.

Rice:  

The primary importer of rice in Iraq is the Ministry of Trade, which must supplement domestic production with imported rice to meet the needs of the PDS.  On average, 90 percent of rice is imported. During the past year, the Ministry has been purchasing lower quality rice, which has increased private sector imports from origins other than the United States.  Demand for higher quality rice is increasing and private sector imports hold potential for growth.