The new duties imposed on date exports have been lifted following strong protests over the restrictive move by Iran Export Confederation, which was endorsed by the ministries of agriculture and industries two weeks after it came into force.
As per the directive of Market Regulation Headquarters, date exporters were required to pay customs duty for shipments ranging from 50,000 to 80,000 rials (38-60 cents) per kilogram or 30% of the rial value of the product depending on the type of dates, Mehr News Agency reported.
The imposition of export tariff was seemingly aimed at reducing the prices of dates in Iran’s local market. However, it drew bitter criticism of exporters who believed the tariff hike would give a body blow to both production and exports.
According to Mohammad Reza Farshchian, the deputy head of the Association of Top Iranian Exporters, exports of dates from Iran generate around $500 million annually.
He had warned that the new tariffs would significantly reduce export revenues this year.
Iran produces more than 1 million tons of dates annually, of which between 70-80% are consumed domestically and 20-30% are exported, according to Siamak Shahriari, a senior member of Dried Fruits and Nuts Exporters’ Association.
Shahriari believes dates exported from Iran are of low demand in the domestic market, as semi-soft and dry dates constitute the biggest share of exports whereas Iranians consume mostly soft dates.
Demand goes up, as prices consequently tend to do, every year during the holy month of Ramadan since date is a typical staple to break fasting by Muslims. This year, in particular, besides higher demand during Ramadan, prices skyrocketed in line with runaway inflation in Iran.
“The 30% rise in export duties cannot be applied to the prices of dates since competitors such as Saudi Arabia, Egypt, the UAE and Pakistan sell their products at lower prices. Therefore, farmers are the ones to pay the surcharge on duties, which reduces the prices of their products,” he had said before the duties were lifted.
Mohsen Rashid Farrokhi, chairman of the National Association of Iranian Dates, had earlier told Financial Tribune in an interview that Egypt, Iran and Saudi Arabia are the world's biggest producers of dates with an average annual production of 1.4 million tons, 1.2 million tons and 1.1 million tons respectively.
"Yet, Iran is the biggest exporter of the crop in the world," Farrokhi added, noting that Egypt ranks second with Saudi Arabia and Tunisia sharing the third spot in the export front.
“Every year, Iran exports around 20% of its overall date production,” he said.
Per capita date consumption in Iran is 3 kilograms (per year).
According to Eskandar Zand, an advisor to the agriculture minister, date production in Iran has increased by 18% during the last 10 years. The average increase worldwide over the same period has been at 10%.
“Land under date cultivation in the world has increased by 10% during the last decade while the area for Iran’s palm groves has grown by 5% during the same period,” he said.
Ebrahim Pourheydari, the deputy head of the National Association of Iranian Dates, said Russia, India, Canada, East Asia and some European countries are among the main destinations of Iran's date exports.
Abolqasem Hassanpour, the former director general of Agriculture Ministry’s Tropical and Subtropical Fruits Department, also told Financial Tribune in a separate interview that 230 hectares of date plantations in Iran produce more than 12 types of the product.
“In each hectare, one direct and 0.5 indirect jobs are created,” he said, adding that date cultivation has created about 350,000 jobs in Iran.
According to Hassanpour, Sistan-Baluchestan, Hormozgan, Kerman, Fars, Bushehr, Khuzestan, Ilam, Kermanshah, Yazd, South Khorasan and Isfahan top the list of Iranian provinces that cultivate dates.
