Why is purchasing the wheat at 31 cents in DAA areas?

The DAA  of the purchase price of wheat from current public farmers for 31 cents per gram of wheat has caused some farmers to be displeased, and dozens of them have moved out in gatherings, considering that "the price does not fit the expenses and fees of wheat cultivation over the past months," given the high prices of the materials,

In its statement last Tuesday, 28 May, after two days of popular protests, DAA made it clear that the price was appropriate and valid and would not be changed, especially since it came after a thorough and thorough study with a number of others.

Over the past few hours, ANHA's agency has gone to several DAA institutions, particularly the agricultural and financial bodies, with precise and targeted questions, which have been able to obtain the studies that preceded the price determination and why DAA has adopted 31 cents, 12 cents lower than last year, as well as information on the economic situation in the North and East of Syria.

Approximately $20 million per month in oil revenue losses as a result of the bombing of the Turkish occupation

According to information obtained from the Financial Authority, a number of major fields such as the fields of return, Zarba and Papasi, which produced approximately 3,000 to 4,000 tons of crude oil per day, were completely stopped by the aerial bombardment of the Turkish occupation last autumn, affecting the financial revenues of DAA. In its presentation of the information, the Authority indicated that approximately $20 million of the monthly revenues of these fields had been lost over the past months.

In parallel, the bombing of the main supplier of DAA, i.e., the oilfields, the bombing of power stations, vital facilities and a number of plants, caused similar losses in the service, industrial and commercial sectors.

DAA explained that it had directed the general budget to allocate a specific amount for specific services during the current year as a result of the existing deficit, indicating that one of the reasons for the deficit was mainly a high price compared to neighbouring countries and world prices, for the purchase of wheat during the past year, which was $430 per ton.

How will DAA pay for wheat under the existing deficit?

According to data obtained by ANHA's agency, DAA allocated $125 million for the purchase of wheat during the current year from farmers, but projections suggest that the North and East of Syria will produce 1 million tons of wheat for the current year, on the basis of which only 35% of the total amount required for the purchase of the million tons is sufficient.

DAA administrators say that they contacted the official stakeholders of the government of Damascus, as well as the authorities in Southern Kurdistan, as well as other countries in the vicinity to sell wheat for a sum, to pay for the purchase of wheat at home, but all of them paid only $250 per ton of wheat.

Observers are also of the view that the price set by the government of Damascus is imaginary, and there are fears that the amount of farmers will be stolen. Moreover, the costs in those areas are high. Hence, the 36 cents announced by the government in Damascus cannot be compared to the 31 cents announced by the DAA. Even the offer made by the DAA to sell quantities to the government of Damascus at the price it has set and the refusal of the government of Damascus to make it clear that it is not serious.

Thus, if wheat is bought for 31 cents from farms and sold for 25 cents to outsiders, DAA has now eliminated the idea of selling wheat abroad and will store it for the coming years.

Administrators in the North and East of Syria state that the large quantities of wheat purchased annually by DAA always take into account that the citizen should not lose and that pressure on the administration should not be reduced. They explain that wheat, which is converted into flour and then bread and sold to citizens, only pays for the needs and expenses of the bakeries, salaries and annual maintenance, especially since all expenses, equipment and other items are in dollar terms. Revenue from citizens is in Syrian currency, which also creates a problem.

In addition, the figures disclosed by ANHA's agency Finance Authority show the loss of DAA in the matter of selling fuel to citizens at home. DAA depends on oil sold abroad, and the cost of extracting, refining, liquidating and selling oil to citizens at home does not pay 50% of its production costs.

The DAA has adopted a dollar instead of an unstable lira to ensure that farmers are not lost.

According to the Agriculture Authority, over the past year it has convinced DAA by adopting the dollar in lieu of the Syrian pound, noting that some farmers spend their bills in the seventh month and others in the tenth month. Over a period of four months, there may be significant changes in the exchange rate of the Syrian pound. The citizen is particularly affected by the fact that market movements change as bills are paid.

Exchange numbers and dealers are fake and unfounded.

According to officials, the figures published by the unofficial sites were bogus and unfounded, Russian and Ukrainian high-quality wheat was only $250 per ton, while Argentine wheat was $295 per ton and Bulgarian wheat $286 per ton, according to the latest update of world wheat prices, confirming that wheat was only $300 per ton.

Depending on this, and as a result of the above, the DAA has set the price of US$ 310 per tonne of wheat, explaining that farm profits will not be significant, but also, in this case, will not lose, after studying expenses and fees.