The United Nations has estimated that Islamic State militants now control as much as 40 percent of Iraq's annual production of wheat which is one of the staple foods in the country along with barley and rice.
The militant group is depriving the Yazidi and Christian minorities of food supplies in order to tighten their grip in the captured areas, reported News.com.au.
In northern Iraq and neighbouring Syria, IS militants have recruited silo operators to help run their production.
Many farmers who earlier delivered wheat to Mosul before it was completely captured were not paid for their harvest.
Almost all of Iraq's water comes from sources that are under strong IS hold including the Euphrates and the Tigris.
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