Iran exported 3.94 million tons of agricultural and food products worth $2.33 billion in the first six months of the current fiscal year (March 21-Sept. 22).
The figures indicate a 5.63% rise in tonnage but a 10.37% decline in value 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 $426.15 million worth of it during the period.
Tomato was the second major agricultural export product in terms of value with $178.23 million, followed by watermelon with $168.47 million, dates with $85.57 million and apple with $84.5 million.
In terms of tonnage, watermelon topped the list with 723,760 tons, followed by tomato with 375,220 tons, potato with 339,610 tons and apple with 279,410 tons.
Agronomical products accounted for 2.7 million tons worth $931.57 million of total exports, up 8.65% in terms of tonnage and down 9.96% in terms of value year-on-year.
Horticultural exports stood at 890,010 tons worth $1.04 billion, up 12.97% and 0.46% in terms of tonnage and value YOY respectively.
Exports of livestock and poultry products stood at 293,860 tons worth $263.63 million, down 25.96% in tonnage and 35.28% in value YOY.
The veterinary sector exported 569 tons of products worth $5.21 million, up 61.25% and 42.65% in weight and value YOY respectively.
The fisheries sector exported 45,730 tons worth $77.27 million, posting a fall of 4.26% and 24.04% in total volume and value respectively YOY.
Exports from the forest and rangeland sector hit 7,080 tons worth $10.82 million, down 25.66% and 28.99% in tonnage and value respectively YOY.
Iran exported 8.83 million tons of agricultural and food products worth
$6.21 billion during the last fiscal year (ended March 2021).
Imports Up 69.77%
Imports in the six-month period stood at 14.99 million tons worth $8.52 billion, indicating a 24.29% and 69.77% growth in volume and value respectively year-on-year.
Feed corn had the biggest share in total imports in terms of value with $1.48 billion, followed by GM soybeans with $984.5 million, soymeal with $754.46 million, wheat with $748.47 million and rice with $617 million.
In terms of tonnage, feed corn topped imports with 4.4 million tons, followed by wheat with 2.25 million tons, barley with 2.03 million tons, GM soybeans with 1.49 million tons and soymeal with 1.37 million tons.
Agronomical products accounted for 14.22 million tons worth $7.22 billion of total imports, up 23.66% and 75.46% in tonnage and value respectively YOY.
Horticultural products stood at 687,180 tons worth $865.66 million, up 47.06% and 63.81% in tonnage and value respectively YOY.
Imports of livestock and poultry products hit 57,950 tons worth $197.27 million, up 2.28% in tonnage but down 20.76% in value respectively YOY.
The veterinary sector imported 2,299 tons worth $194.76 million, up 212.02% and 160.12% in tonnage and value respectively YOY.
Imports by the fisheries sector amounted to 5,660 tons worth $14.9 million, down 57.88% and 47.09% in tonnage and value YOY.
Imports from the forest and rangeland sector totaled 14,240 tons worth $29.47 million, down 30.67% in tonnage but up 20.18% in value YOY.
The export and import volumes indicate that Iran recorded an agrifood trade deficit of 11.05 million tons in tonnage and $6.19 billion in value during the first six months of the Iranian year.
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.
“On the other hand, 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 that change of policies regarding domestic production seems vital, given the rise in the costs of imports. “Dependency on imports of animal feed has turned into the livestock industry’s Achilles’ heel and it’s advisable to reduce the risks of the impacts 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 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 this sector in the current Iranian year (March 2021-22).
The ICCIMA report says precipitation levels have fallen drastically, Mehr News Agency reported.
The Majlis Research Center has released a list of Iranian provinces in a critical state of water shortage: Isfahan, Hormozgan, Sistan-Baluchestan, Ardabil, Fars, Markazi and Khorasan Razavi.
Drought has inflicted losses worth 670 trillion rials ($2.4 billion) 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 the total losses pertained to the decline in production of agronomic crops, as well as 26% 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 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, “Beside the decline in precipitation rate, increasing heatwaves and evaporation, as well as the inappropriate distribution of rainfall, has resulted in drought and its adverse consequences on 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 faced with 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 having normal conditions,” he added.
Mousavi noted that emergency plans put together by the 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 as compared to open-air farming practices, the official 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 in 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 of barley imports compared with last year to control prices, reduce the pressure of livestock on pastures and support production of milk and meat in drought condition.”
Mousavi stressed that loan repayment deferrals, provision of cheap loans, paying compensation to farmers through 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.
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 says it shrank by 0.9%.
In contrast, the “industries and mines” and services sectors grew by 13.8% and 4.5% respectively, according to SCI; 2.1% and 7%, according to CBI.
