The Agriculture Ministry has imposed export tariffs on three agricultural products to boost domestic supplies and bring down their rising prices.
These products include potatoes, tomatoes and onions, on which 70%, 100% and 120% in export duty will be levied respectively.
According to an IRIB News report, the new tariff system was implemented on Oct. 13 and will remain in effect until Nov. 21.
According to the Statistical Center of Iran, “Food and beverages”, one of 12 groups of goods and services surveyed for calculating the inflation, registered a 60.1% average annualized inflation in the seventh month of the current Iranian year (Sept. 23-Oct. 22).
The group’s month-on-month and year-on-year inflation rates were 2.2% and 71.4% respectively, data released by the Statistical Center of Iran show.
Potato Sees 153% YOY Price Rise
Potato with 153.2% saw the third highest year-on-year inflation among 53 food products reviewed by SCI during the month.
The general average annualized inflation in the month to Oct. 22 stood at 42.9%, according to the SCI.
This is the fifth consecutive month the annualized inflation is rising, after the government put into effect what it touted as “economic surgery” by abolishing years of heavily subsidizing basic imports.
The general goods and services Consumer Price Index (using the Iranian year to March 2017 as the base year) stood at 541 in the month under review, indicating a month-on-month rise of 3% and a year-on-year rise of 48.6%.
Among 12 groups of goods and services reviewed by SCI, the highest and lowest annualized inflation rates were respectively registered for “hotels and restaurants” with 71.1% and “communications” with 6.5%.
The highest MOM inflation rates were respectively registered for “education” with 15% and “communications” at 1% month-on-month.
“Hotels and restaurants” with 81% and “communications” with 10.3% saw the highest and lowest YOY inflation respectively.
CPI hit 532 for urban households and 591.5 for rural households, indicating a month-on-month increase of 3.2 and 2%, respectively.
SCI put the annualized inflation for urban and rural areas at 42.3% and 46.2%, respectively.
The year-on-year inflation stood at 47.7% for urban areas and 53.2% for rural areas in the month.
The rise in prices of goods and services accelerated at an unprecedented pace after the government decided to overhaul the import subsidy system.
The government move saw the abolition of the controversial practice of allocating cheap dollars at the rate of 42,000 rials per dollar, locally known as the Preferential Foreign Currency, to import essential goods, including corn, soymeal, unprocessed oil, oilseeds and barley, in addition to wheat, flour and medicine.
The market value of the dollar is currently above 300,000 rials.
“Until now, we have been paying to producers [read importers] but now the subsidies go to consumers. In fact, the Preferential Foreign Currency has not been ceased, rather the allocation method has changed,” President Ebrahim Raisi said in a televised speech on the eve of the introduction of the move in May.
In his speech, Raisi emphasized that the removal of cheap dollar allocation will not lead to a price rise in wheat, flour and medicine. However, the move has led to a dramatic rise in the prices of essential goods.
Also known as necessity or basic goods, essential goods are products consumers will buy, regardless of changes in income levels.
In fact, the prices of all commodities and services have also risen suddenly in a ripple effect.
H1 Agrifood Exports at 3.3m Tons
Iran exported 3.36 million tons of agricultural and food products worth $1.85 billion during the first six months of the current fiscal year (March 21-Sept. 22), latest data released by the Agriculture Ministry show.
The figures indicate a decrease of 14.77% in tonnage and 20.33% in value compared with last year's corresponding period.
Watermelon topped the list of exports in terms of value with $161.35 million. Tomato was the second major agricultural export product in terms of value with $144.47 million, followed by pistachio with $128.34 million, saffron with $65.71 million and dates with $57.33 million.
In terms of tonnage, again watermelon topped the list with 731,910 tons, tomato with 308,820 tons, followed by Persian melon with 204,400 tons, apple with 159,460 tons and onion, shallot and garlic with 157,180 tons.
