I. Key Messages
The Cabinet set the minimum export price of barley at $125 USD per tonne and the internal price at no more than $165 USD per tonne.
Food prices are stable, with certain commodities experiencing a slight price decrease.
The Ministry of Migration and Displacement (MoMD) is launching an initiative called ‘1.5 Million for Returnees’ that provides 2,600 returning families with 1.5 Million IQD each to cover their basic needs.
II. Overview
The novel coronavirus (COVID-19) pandemic continues to affect the world, including federal Iraq and the Kurdistan Region (KR-I). As of April 26, 2020, the World Health Organization reported 1,704 cases in Iraq, with 86 deaths. Movement restrictions and curfews remain in place in an effort to curtail transmission of the disease, although the measures have been relaxed slightly. The Food and Agriculture Organization (FAO), the World Food Programme (WFP) and the World Bank continue to track the impact of this crisis on food security, agriculture production and the overall food system.
III. Food Supply: Production (primarily on farm)
Farmers continue to be able to access their fields and herds in both federal Iraq and KR-I in alignment with Supreme Committee’s Decision No. 55 that was issued at the end of March 2020. Additionally, the government reports that slaughterhouses are operating as normal.
Wheat and barley harvesting continues in the south. For barley, the Cabinet set the minimum export price at $125 USD per tonne and the internal price at no more than $165 USD per tonne. The Border Port Commission and General Authority of Customs have tightened procedures to reduce smuggling, particularly for wheat and barley.1
In order to promote food sovereignty, the Ministry of Planning announced a National Food Security Project in Iraq (2020-2022) in consultation with relevant stakeholders. The plan aims to increase Iraq’s self-sufficiency for both crop and animal products.2
Other Challenges. Mature Desert Locust swarms are generally under control, with the Directorate of Plant Protection and governorate-level Agriculture Directorates conducting pesticide spraying campaigns against nymph populations in Al Muthanna, Najaf and Thi Qar governorates. Al Muthanna continues to suffer from the highest rate of infestation, with approximately 5,000 ha affected. Thankfully, the wheat and barley harvests have already begun in the south and spring rains have supported native vegetation that the nymphs can feed on. Thus, the impact on crop yields is expected to be minimal.
IV. Food Supply: Markets (farm gate to markets)
Markets. Movement restrictions nationwide have relaxed. slightly and markets have started reopening during the day (6:00 am – 6:00 pm). According to the Ministry of Agriculture (MoA), agricultural agents have requested that authorities take additional measures to reduce seasonal produce imports, beyond the existing import ban on 25 commodities, in order to support domestic production. There is also interest in exporting some agricultural products if production remains high, particularly for potatoes, cucumbers, tomatoes and eggs.3
Iraq has begun to cut oil production in alignment with an OPEC -plus agreement, which requires that Iraq cut 1 million barrels per day.4 This new quota is an attempt to combat falling prices due to a slump in global demand. Demand is expected to remain subdued for an extended period, so pressure on the state budget remains high, which may have cascading impacts on the government’s ability to pay salaries and provide basic public services (i.e. electricity and healthcare).
Imports and Exports. The majority of borders remain open for trade (i.e. food and non-food items), but the borders with Iran and Kuwait have remained closed, with some exceptions for selected products (i.e. natural gas). The Iraq-Iran border officially closed on March 8, 2020; however, Iran seeks to reopen the border to allow for greater movement of goods, particularly agriculture products. At the time of writing this report; however, the Iraqi Border Authority stated that the border would remain closed until further notice.5
Government officials have conducted inspections of Baghdad, Babylon and Karbala’s checkpoints to ensure adherence to approved procedures and continued movement of food, medical and agricultural supplies.6