Iran registers major increase in agricultural exports
Iran’s customs office (IRICA) figures show the country’s agricultural exports rose significantly in the five months to late August compared to the same period last year.
IRICA figures published on Saturday showed that Iran had exported $1.453 billion worth of agricultural products in the five months to August 21, up by 33% from the same period in 2023, Press TV wrote.
The figures showed that shipments had increased by 22% in volume terms to reach 2.657 million metric tons (mt) over the April-August period. Pistachio topped the list of main Iranian agricultural products exports with some $352 million worth of shipments, followed by tomatoes at $177 million and apples at $111 million, showed the figures.
The IRICA said that greenhouse-grown pepper, orange, pistachio, apple and lettuce shipments had shown the highest rise in exports in April-August compared to the same period last year.
That came against a 53% drop in the exports of saffron from Iran, it said, adding that exports of various types of peach and watermelon had also declined by around 15%. Iran has seen a significant increase in its agricultural exports in recent years thanks to a more generous government support for the sector and the difference between prices of crops in local and regional markets.
Higher exports have led to increased activity and more jobs in Iran’s agriculture sector while it has also led to better development for the country’s rural regions.
Government figures released in July showed that Iran’s agricultural output had reached 131 million mt by the end of the calendar year to March 20, up from 110 million mt reported in the previous year.
According to statistics, agricultural products account for 32% of overall Iranian exports. Almost 80% of the country’s rural population makes a living through agriculture. This means Iran enjoys a very suitable capacity for the production and export of agricultural products.
Exporting agricultural and livestock items is one of the most profitable types of business with a high profit margin.
Last year, Iran exported $6.2 billion worth of agricultural products, 31.5% of which went to Iraq, 11.9% to the United Arab Emirates and 8.3% to Russia. Pakistan, Afghanistan, India, China, Turkey, Turkmenistan and Azerbaijan ranked next, where more than 83% of Iran’s export goods headed to these 10 countries.
According to the Research Institute for Planning, Agricultural Economy and Rural Development, the average value of each kilo of agricultural export goods rose by 10.3% from 67 cents in 2022 to 74 cents in 2023, while the figure for imported goods fell by 4.5% from 73 cents to 70 cents during the same period.
Watermelons, apples, tomatoes, potatoes, garlic and onions were the five main export items in terms of weight and pistachios, apples, dates, tomatoes and milk powder were the five main export items in terms of value last year.
Agricultural products, along with oil, caviar, hand-woven carpets, were once key Iranian export items. But a multilayered sanctions regime imposed over years has taken a toll on long-distance exports mostly destined for the US and Europe.
As a result, the export of traditional Persian rugs from Iran, a market which once exceeded $2 billion, has plummeted, so has the sales of pistachios, the popular nibble which was once Iran’s main export commodity outside the oil sector, earning it more than $1 billion once and providing many people with jobs in an arid area such as the southeastern province of Kerman. The delicacy had even its customers in the United States where it was allowed along with Iranian caviar, saffron and carpets for limited business. But in what was characterized as a pistachio war, the US government settled for a 300 percent tariff on Iranian pistachio imports back in 1986, which helped American growers dominate the local market and then turn their attention to Iran’s clients elsewhere.
The situation has left Iran to chart out its presence in the neighboring markets. Some of the most important agricultural and horticultural products of Iran for export to neighboring markets are oranges, raisin, citrus fruits and vegetables, high-quality kiwifruit, potatoes, peanuts, rice, dates and grapes.
Iranian honey, pomegranates, carrots, cucumbers and olives have also a legion of customers in neighboring countries and beyond. Iran’s climatic conditions and geographical location allow it to produce a variety of high-quality agricultural products, which in addition to providing for foreign exchange earnings enable the country to improve its food security and economic resilience limits.
What is needed now is to move towards the specialization of all selected products with relative export advantage. In other words, Iran has to set out long-term plans for promotion of its exports in the world market.
Given the export capacities of Iran’s agriculture sector, the country is best advised to initiate long-term contracts for continuous production and export policies and their implementation in the target markets in order to increase the export share of its selected agricultural products.