Iran, the second-largest wheat consumer in the Middle East, is willing to sell the grain for goods as part of a plan to export a surplus for the first time in 10 years.

The nation�s 350 flour mills are also determined to boost exports to 1 million metric tons in one year, Ali Ghanbari, chief executive officer of Iran�s state grain buyer Government Trading Corp., told a conference in Dubai Tuesday. They�re already selling to Iraq, Afghanistan and Oman, he said.

Iran is seeking to export wheat with production of the durum variety at 600,000 tons, exceeding domestic demand by about half that, Ghanbari said in an interview on Monday. The nation is susceptible to needing imports because two-thirds of wheat planted across 6 million hectares need rain to grow.

�GTC will consider any proposal either for purchase and or barter of Iran quality milling wheat,� Ghanbari said.

Iran reached an agreement with world powers in July to end sanctions on its economy. While food is excluded from the rules, the country since 1980 has mostly only bought wheat from the U.S. when prices were high, said Vince Peterson, vice president of overseas operations at the U.S. Wheat Associates lobby. �On the industry side, the good will is definitely there,� he said.

In 2004, Iran became self-sufficient with domestic milling wheat production at 10.5 million tons, Ghanbari said. One year later, it had to import 5.5 million tons because of drought. The government ended a $50 a ton wheat import duty in August and lifted the rice import ban this month, he said. The ban and duty were intended to protect domestic farmers during harvests.

Making Pasta

Durum wheat is used to make pasta, while the milling variety is for bread. Iran ranks with Turkey as the second-largest wheat buyer in the Middle East, behind Egypt, the world�s biggest wheat importer, according to U.S. Department of Agriculture data.

The nation�s stockpiles will be 8.3 million tons for 2015, compared with the average of 3.1 million for 2012 to 2014, according to the Food & Agriculture Organization. Wheat production is estimated by the USDA to grow to 14 million tons from 13 million a year earlier with consumption rising to 18 million tons from 17.5 million.

By Bloomberg Business