Food and agricultural products accounted for 7.7% of the volume of Iran’s total exports in the fiscal 2020-221 and 17.6% of the value of exports, according to the Islamic Republic of Iran Customs Administration’s spokesperson, Rouhollah Latifi.
Iran exported 346 types of agrifood products in the period under review, of which 225 types were worth over $2,000 per ton while about 70% of exported non-oil goods, excluding agrifood products, were worth less than $1,000 per ton, IRNA reported.
The agriculture sector has been one of the main drivers of growth in Iran’s economy amid the relative recession in other sectors in recent years.
However, Iran Chamber of Commerce, Industries, Mines and Agriculture has warned agricultural officials in a recent report of an imminent drought that would cripple the country’s agricultural activities and hamper economic growth in this sector in the current Iranian year (March 2021-22).
The ICCIMA report says precipitation levels have drastically fallen over the last two months and will reach 142 millimeters, which is 52% less than last year’s similar period, Mehr News Agency reported.
Last month, Majlis Research Center released a list of Iranian provinces facing a critical water shortage: Isfahan, Hormozgan, Sistan-Baluchestan, Ardabil, Fars, Markazi and Khorasan Razavi.
The center also pointed to the decline in dam water levels across the country, saying that on average only 58% of the country’s dam capacities are currently full, which shows the critical situation.
Iran exported 8.83 million tons of agricultural and food products worth $6.21 billion in the last fiscal year (ended March 2021).
The figures indicate a 23.57% and 5.99% rise in tonnage and value respectively compared with the output of the year before, the Agriculture Ministry’s website reported.
Fresh and dried pistachio topped the list of exports in terms of value, as the country exported $1.37 billion worth of it during the period.
Tomato was the second major agricultural export product in terms of value with $358.45 million, followed by apple with $326.67 million, dates with $296.7 million and dried grapes with $234.3 million.
In terms of tonnage, potato topped the list with 950,400 tons, followed by apple with 884,800 tons, tomato with 767,870 tons, watermelon with 703.38 tons and onion with 429.4 tons.
Agronomical products accounted for 5.42 million tons worth $2.07 billion of total exports, up 22.08% in terms of tonnage and down 1.16% in terms of value year-on-year.
Horticultural exports stood at 2.6 million tons worth $3.2 billion, up 32.15% and 16.68% in tonnage and value respectively YOY.
Exports of livestock and poultry products stood at 674,860 tons worth $677.14 million, up 14.44% in tonnage and down 6.64% in value YOY.
The veterinary sector exported 885 tons of products worth $7.82 million, up 153% and 223% in tonnage and value respectively YOY.
The fisheries sector exported 110.6 tons worth $208.66 million, posting a decrease of 12.54% in total volume and 16.37% drop in value respectively YOY.
Exports from the forest and rangeland sector hit 20,120 tons worth $31.73 million, up 23.57% and 5.99% in tonnage and value respectively YOY.
Agrifood Accounts for 85% of Iran’s Exports to Russia
Exports to Russia stood at 1.05 million tons worth $504.56 million in the fiscal 2020-21, of which $429.63 million belonged to fishery, agricultural and food products that account for 68% and 85% of weight and value respectively of the total exports to Russia, according to the Islamic Republic of Iran Customs Administration’s spokesperson.
Apple with $95.5 million, pistachio with $56.75 million, kiwi with $30 million, grapes with $28 million, cherries with $22 million, pepper with $22 million, tomato with $15 million, tomato paste with $15 million, juices, jellies and jams with $12 million and fresh vegetables with $9.13 million were among the top exported goods to Russia, Mehr News Agency reported.
“Lettuce worth $8.8 million, fish and shrimp worth $8.44 million, dairy products worth $7.7 million, garlic worth $4.4 million, watermelon worth $4 million, eggplant worth $3.76 million, cabbages worth $3.7 million, apricots worth $3.5 million, cucumbers worth $3.26 million, tobacco worth $3.05 million, vegetables and hard-skinned fruits worth $2.93 million, celery worth $2.25 million, chocolates and biscuits worth $2 million, onion worth $1.67 million, table salt worth $1.23 million, potatoes worth $1.23 million, tea worth $550,000, dried flowers and mint worth $235,000 and spices and henna worth $300,000 were among the other products exported to Russia.
Iran and Russia traded $2.5 billion worth of goods in the last Iranian year (ended March 20, 2021), according to the head of the Islamic Republic of Iran’s Customs Administration, Mehdi Mirashrafi.
He noted that imports from Russia exceeded $2 billion during the period, registering an increase of 19% compared to the previous year, Fars News Agency reported.
Iran’s exports to Russia increased by 10% year-on-year to nearly $510 million.
According to the IRICA chief, trade with Russia accounted for 77% of Iran’s total trade with EEU.
Iran and the Eurasian Economic Union – comprising Russia, Kazakhstan, Armenia, Belarus and Kyrgyzstan – signed a three-year provisional agreement in Astana, Kazakhstan, on May 17, 2018, for the bloc to welcome Iran into EEU. The arrangement, which lowers or abolishes customs duties, is the first step toward implementing free trade between Iran and the five members of the union.
Key objectives of EEU include increasing cooperation and economic competitiveness for member states and promoting stable development to raise their standards of living.
The average tariff set by the Eurasian Economic Union on Iranian goods as part of a preferential trade agreement stands at 3.1%, while the figure is 12.9% for EEU goods exported to Iran.
The two sides have listed 862 types of commodities in their three-year provisional trade agreement. As per the deal, Iran will enjoy easier export terms and lower customs duties on 502 items and the same goes for 360 items from the EEU member states.
Negotiations on a full-fledged free trade zone between the Eurasian Economic Union and Iran are set to start in the near future, the press service of the Eurasian Economic Commission told BelTA following a meeting between Chairman of the EEC Board Mikhail Myasnikovich and Iran's energy minister and co-chairman of the Russian-Iranian intergovernmental commission on trade and economic cooperation, Reza Ardakanian, which took place on the sidelines of the St. Petersburg International Economic Forum.
“The EAEU made the appropriate decisions regarding the launch of the negotiations in December 2020. The EAEU member states are currently finalizing the mandate for the negotiations,” Myasnikovich said.
“We expect to complete the necessary procedures and prepare for the talks by the end of June 2021,” he added.
EAEU refers to the Eurasian Economic Union.
Myasnikovich noted that the interim free trade agreement between EAEU and Iran has already become an effective tool for advancing cooperation.
“In 2020, the EAEU-Iran trade totaled $2.9 billion, growing by 18.5% over 2019,” he said.
“In Q1 2021, the EAEU export to Iran rose by 43.5% year-on-year and import increased by 20%. The EAEU-Iran trade went up by over a third and totaled $1.15 billion. This was possible thanks to our joint work.”
$11b Worth of Agrifood Exported to Iraq in 5 Years
Iraq is another major destination of Iran’s agrifood products. A total of $11 billion worth of these goods were exported to Iraq from Iran in the past five years, of which $3.7 billion belonged to fruit and vegetable, according to the director general of Arab-African Office of Trade Promotion Organization of Iran.
From the fiscal 2016-17 to fiscal 2020-21, about 30% of total exports to Iraq consisted of agricultural and food products, including fruits and vegetables, dairy products, sweets and chocolates, cereal, nuts and dried fruits, flowers and medicinal plants, of which fruit and vegetable had the largest volume of export from this group.
“In the period under review, despite the formation of the production process for these types of products in Iraq and the application of prohibitions and tariff and non-tariff restrictions on the import of some goods by the Iraqi government, Iran's exporters of agricultural products and food industry have managed to maintain a strong presence in Iraq,” Farzad Piltan was also quoted as saying by IRNA.
Fresh fruits and vegetables, tomato, apple, watermelon, potato, onion, cucumbers and kiwi were the most important goods exported to Iraq from Iran during the period under review.
Latest statistics provided by the Islamic Republic of Iran Customs Administration show a total of 16.9 million tons of non-oil goods worth $6.3 billion were exported from Iran during the month to May 21.
Iraq with 3.1 million tons worth $953 million of imports was the second biggest destination of Iranian exports during the period (down 18% in weight and 13% in value compared with the corresponding period of the year before).
