Economy, Domestic Economy

Sugar Imports Unnecessary

Sugar Imports UnnecessarySugar Imports Unnecessary

Iran’s sugar reserves are sufficient to meet domestic demand, the deputy head of Government Trading Corporation of Iran said. “The government has no problem in feeding factories and controlling the market prices,” Hassan Abbasi was also quoted by IRNA as saying. His comments came after the Association of Iranian Confectionery Manufacturing Companies claimed the government’s ban on sugar imports has led to a shortage in the domestic market. “Chocolate and candy factories, which are in dire need of sugar, are on the verge of being shut down,” said Jamshid Maghazei, an official with the association. The Agriculture Ministry imposes periodic bans on sugar imports to prevent oversupply and support domestic manufacturers. According to Iran Sugar Association, Iran is currently 70% self-sufficient in sugar production and a complete self-sufficiency is possible within the next four years.  Iranians consume 2.2 million tons of sugar-related products annually. In its latest report on Iran’s agribusiness, the Business Monitor International forecast domestic consumption 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. Iran recently imported 250,000 tons of Brazilian raw sugar—its first shipment of sugar since western sanctions on Tehran were lifted—in mid-January.