Iran exported 3.26 million tons of agricultural and food products worth $1.87 billion in the first five months of the current fiscal year (March 21-Aug. 22).
The figures indicate a 6.58% rise in tonnage but an 11.98% decline in value compared with last year’s corresponding period, the Agriculture Ministry reported.
Pistachio topped the list of exports in terms of value, fetching $338.5 million during the period.
Watermelon was the second major agricultural export in terms of value with $158.7 million, followed by tomato with $138.3 million, apple with $72.3 million and raisins with $67.8 million.
In terms of tonnage, watermelon topped the list with 686,620 tons, followed by potato with 290,390 tons, tomato with 290,390 tons and apple with 235,210 tons.
Agronomical products accounted for 2.27 million tons worth $767.65 million of total exports, up 10.97% in terms of tonnage and down 10.15% in terms of value year-on-year.
Horticultural exports stood at 707,410 tons worth $818.66 million, up 11.7% in terms of tonnage but down 11.98% in terms of value YOY.
Exports of livestock and poultry products stood at 239,240 tons worth $213.63 million, down 26.23% in tonnage and 37.49% in value YOY.
The veterinary sector exported 435 tons of products worth $4.48 million.
The fisheries sector exported 37,370 tons worth $61,800 million, posting a fall of 6.91% and 26.31% in volume and value respectively YOY.
Exports from the forest and rangeland sector hit 5,259 tons worth $8,170 million, down 26.92% and 28.84% in tonnage and value respectively YOY.
Iran exported 8.83 million tons of agricultural and food products worth
$6.21 billion in the last fiscal year (ended March 2021).
Imports Up 37.67%
Imports in the five-month period stood at 10.51 million tons worth $5.67 billion, indicating a 3.57% and 37.67% growth in volume and value respectively year-on-year.
Feed corn had the biggest share in total imports in terms of value with $1.15 million, followed by GM soybeans with $747.15 million, sunflower oil with $554.18 million, barley with $472.43 million, wheat with $456.21 million and soymeal with $412.54 million.
In terms of tonnage, feed corn topped imports with 3.47 million tons, followed by barley with 1.63 million tons, wheat with 1.41 million tons, GM soybeans with 1.14 million tons and soymeal with 765,150 tons.
Agronomical products accounted for 9.91 million tons worth $4.7 billion worth of total imports, up 2.32% and 37.6% in tonnage and value respectively YOY.
Horticultural products stood at 540,460 tons worth $664.27 million, up 39.21% and 53.23% in tonnage and value respectively YOY.
Imports of livestock and poultry products hit 38,520 tons worth $136.61 million, down 15.23% and 31.34% in tonnage and value respectively YOY.
The veterinary sector imported 1,477 tons worth $140.33 million, up 274.12% and 360% in tonnage and value respectively YOY.
Imports by the fisheries sector amounted to 3,760 tons worth $9.79 million, down 57.72% and 48.8% in tonnage and value YOY.
Imports from the forest and rangeland sector totaled 10,850 tons worth $17,850 million, down 23.67% and 10.26% in tonnage and value YOY respectively.
The export and import volumes show that Iran recorded an agrifood trade deficit of 7.25 million tons in tonnage and $3.79 billion in value during the first five months of the Iranian year.
Food Security Alarm
According to Hamed Najafi-Alamdarlou, a faculty member of Tarbiat Modares University, Iran’s dependency on the import 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 in 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,” he added.
Najafi-Alamdarlou believes a change of policies regarding domestic production is crucial, given the rising cost of imports.
“Dependency on import of animal feed has turned into the livestock industry’s Achilles’ heel and it’s advisable to reduce the risk of the impact of price fluctuations on local markets by promoting sustainable domestic production, improving productivity and reducing agricultural waste,” he added.
Water Shortage
Iran’s agriculture sector facing large-scale water shortage.
In a recent report, Iran Chamber of Commerce, Industries, Mines and Agriculture warned agricultural officials 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, Mehr News Agency reported.
The 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.
Drought has inflicted 670 trillion rials ($2.4 billion) in losses on Iran’s agriculture sector since Sept. 23, 2020, 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 the total losses pertained to the decline in production of agronomic crops, 26% to horticultural products, 13% to fisheries and livestock, and 11% to forage crops, he said in June.
“In addition, 4% of the total losses are to blame on challenges created in water transportation infrastructures, pools, pipes, aqueducts and springs, and 3% of losses can be attributed 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, “Apart from the decline in precipitation rate, rising heatwaves and evaporation as well as the inappropriate distribution of rainfall have resulted in drought and its adverse consequences in the agriculture sector.
“Reports by Iran Meteorological Organization show 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 have normal conditions,” he added.
Mousavi noted that emergency plans put together by the Agriculture Ministry underlines 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 industries sector, has been underscored in this plan,” he said.
Noting that greenhouse farming reduces water consumption as compared to outdoor farming practices, he said agricultural technologies such as 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.
“On the other hand, 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 imports of barley compared with last year to control prices, reduce the pressure of livestock on pastures and support production of milk and meat in drought condition.”
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 paying grants to farmers who have lost 100% of their products are advised to manage the drought crisis in the agriculture sector, he concluded.
Agriculture was the only economic sector in Iran to have experienced negative growth in the first quarter of the current Iranian year that started March 21.
According to the Statistical Center of Iran, the drought-hit sector contracted by 4.5%. The Central Bank of Iran says it shrank by 0.9%.
In contrast, the industries and mines, and services grew by 13.8% and 4.5% respectively, according to SCI; 2.1% and 7%, according to CBI.
