Economy, Business And Markets

70% of Sugar Demand Met Domestically

70% of Sugar Demand Met Domestically70% of Sugar Demand Met Domestically

Sugar production exceeded 1.5 million tons in the last Iranian year (March 2015-16), the head of Iran Sugar Association said.

“Sugar and sugar cubes have had the least price fluctuations and in the past few years, we experienced an ascending trend in production,” ISNA quoted Bahman Danayi as saying.

“At present, we are 70% self-sufficient in the field and if all goes well, Iran will become fully self-sufficient in the next four years.”

Noting that current reserves stand at more than 580,000 tons, he said the government plans to issue permits for the import of about 480,000 tons this year.

Iranians consume 2.2 million tons of sugar-related products annually.

In its latest report on Iran’s agribusiness, the Business Monitor International forecast that domestic consumption will grow to reach 3.1 million tons by 2020, noting that demand will be mainly driven by population growth and improved macroeconomic conditions following the lifting of sanctions in 2016.

A resolution passed by the Economy Council in 2014 exclusively authorized sugar factories to import sugar in proportion to their production in a move aimed at enabling sugar producers to regulate the market, compensate the price difference between domestic and imported sugar, and prevent dealers from manipulating the market.

This is while last year, high levels of sugar imports led to an oversupply, putting pressure on domestic producers.

Iran recently imported its first shipment of sugar since western sanctions on Tehran were lifted in mid-January.

At least 250,000 tons of Brazilian raw sugar were purchased, Reuters quoted “trade sources” as saying last week.