Agriculture was the only economic sector in Iran to have experienced negative growth in the first quarter of the current Iranian year that started on March 21.
According to the Statistical Center of Iran, the drought-hit sector contracted by 4.5% while the Central Bank of Iran believes it shrank by 0.9%.
In contrast, SCI said “industries and mines” and “services” grew by 13.8% and 4.5%, while CBI said these reached 2.1% and 7%, respectively.
Iran’s agriculture sector is facing a threat of water shortage.
In a recent report, Iran Chamber of Commerce, Industries, Mines and Agriculture has warned agricultural officials of an imminent drought that would cripple the country’s agricultural activities and hamper economic growth in the current Iranian year (March 2021-22).
The ICCIMA report says precipitation levels have fallen drastically, Mehr News Agency reported.
Majlis Research Center has released a list of Iranian provinces in critical state of water shortage: Isfahan, Hormozgan, Sistan-Baluchestan, Ardabil, Fars, Markazi and Khorasan Razavi.
Massive Drought Losses
Drought has inflicted 670 trillion rials ($2.4 billion) in losses on Iran’s agriculture sector since the beginning of the current crop year, according to Mohammad Mousavi, an official with the Agriculture Ministry.
Assessments carried out over 11.2 million hectares of farmlands in 30 provinces show 43% of total losses pertained to the decline in production of agronomic crops, as well as 26% to a decline in horticultural products, 13% in fisheries and livestock, and 11% in forage crops, he said in June.
“In addition, 4% of the total damage are to blame on challenges created in water transportation infrastructures, such as pools, pipes, aqueducts and springs, and 3% of losses to water supply complications and the animal feed used by nomads,” he was quoted as saying by Mehr News Agency.
Noting that precipitation rate in the current crop year has decreased by 54% compared with last year and 41% compared with the long-time average, the official said, “Besides the decline in precipitation rate, rising heatwaves and evaporation as well as the inappropriate distribution of rainfall have resulted in drought and caused adverse consequences on the agriculture sector.
“Reports by Iran Meteorological Organization say 92% of the country have been affected by drought at different levels: 20% of the country’s area are facing extreme drought, 28% severe drought, 25% moderate drought and 19% of the country are going through stages of becoming abnormally dry; only 8% of the country are in normal conditions.”
Mousavi noted that emergency plans put together by Agriculture Ministry underline the management of strategic reserves, animal feed and essential goods in proportion to the decline in production.
“Easing pressure on groundwater resources and soil in the country, fair distribution of pressure or weight of water shortage in different sectors, when used as potable water, or in agriculture or industrial sector, has been underscored in this plan,” he said.
Noting that greenhouse farming reduces water consumption compared to outdoor farming practices, the official said greenhouses will be effective in conserving water while simultaneously enhancing production, exports and farmers’ livelihoods.
“Grazing management must be adjusted quickly to drought conditions to preserve pastures. At least one million head of livestock must be purchased by State Livestock Affairs Logistics Inc. to lift pressure on the country’s pastures. Twenty-two million head of livestock now depend on grazing of pastures,” he said.
Mousavi further said given the decline in animal feed production, compared with last year, the shortage must be filled through imports.
“We have proposed an increase of 3.7 million tons in barley import compared with last year to control prices, reduce the pressure of livestock in pastures and support milk and meat production in drought condition,” he said.
“Loan repayment deferrals, provision of cheap loans, paying compensation to farmers by the Agricultural Insurance Fund, financing reconstruction of water supply and transportation infrastructures, and extending grants to farmers who have lost 100% of their products will help manage the drought crisis in the agriculture sector.”
Agrifood Trade Deficit
Latest data released by the Agriculture Ministry show Iran recorded 3.99 million tons worth $2.36 billion in agrifood trade deficit in the current fiscal year’s first quarter (March 21-June 21).
Exports stood at 2.4 million tons worth $1.2 billion.
The figures indicate a 16.95% rise and a 1.83% decline in tonnage and value respectively compared with last year’s corresponding period, the Agriculture Ministry’s website reported.
Pistachio topped the list of exports in terms of value, as the country exported $204.21 million worth of it during the period.
In terms of tonnage, watermelon topped the list with 619,030 tons.
During the same period, imports stood at 6.4 million tons worth $3.58 billion, indicating a 7.71% year-on-year decline in volume and a 37.17% gain in collective value respectively.
Feed corn had the biggest share in total imports in terms of value with $644 million.
In terms of tonnage, feed corn topped imports with 2.01 million tons.
Food Security Alarm
According to Hamed Najafi-Alamdarlou, a faculty member of Tarbiat Modares University, Iran’s dependency on imports of agricultural essential goods in recent decades has led to the allocation of huge sums of foreign currency reserves to these imports.
“On the other hand, the lack of optimal use of resources and price repression of domestic products have increased the appeal for imports and reduced local farmers’ contribution to meeting local food needs,” he wrote for the Persian economic daily Donya-e-Eqtesad.
“As a result, trade deficit of agricultural products, which hovered around 9.4 million tons in the last decade, increased to 14.2 million tons in the current decade. Last year [March 2019-20], imports of agricultural products hit the unprecedented mark of 24.5 million tons, registering a rise of 19.1% compared with the year before and a growth of 40% compared with the year ending March 2017.”
Najafi-Alamdarlou believes a change of policies regarding domestic production seems vital, given the increase in the cost of imports. “Dependency on imports of animal feed has turned into the livestock industry’s Achilles’ heel and it’s advisable to decrease the risks of the impacts of price fluctuations on local markets by promoting sustainable domestic production, improving productivity and reducing agricultural waste,” he said.
The 26th International Exhibition of Food, Food Technology and Agriculture, also known as “Iran Agrifood 2021”, concluded in Tehran International Fairground on Sept. 25.
Iran Agrifood 2021 is organized with the aim of showcasing the latest technological, scientific and industrial achievements and capabilities of businesses active in the field and help ensure food security.
