Agriculture Sector Generates 12% of Iran’s GDP

The agriculture sector now accounts for 12% to 13% of Iran’s gross domestic product, up from 9% to 10% three years ago (when President Hassan Rouhani first took office in August 2013), according to Agriculture Minister Mahmoud Hojjati.

“The sector has created between 19% and 20% of all the jobs in the country,” the minister was quoted as saying by IRNA.

Iran’s agriculture sector grew 6% during the first half of the current Iranian year (started March 20, 2016) compared with last year’s corresponding period, according to government data.

According to Eskandar Zand, the head of Agricultural Research, Education and Promotion Organization, the number of farmers is reduced by 50,000 every year due to a lack of facilities in the sector.

“Some 50% of the rural population are active in the agriculture sector. The figure for urban population is 5%,” he said.

Iran’s trade balance in the agriculture sector during the eight months to November 20 stood at minus $2.16 billion, which shows a $328 million improvement compared with last year’s corresponding period, according to  deputy agriculture minister, Abdolmehdi Bakhshandeh.

“Agricultural exports during the eight-month period amounted to more than 3.8 million tons worth over $3.53 billion, registering a 25.2% and 4.1% rise in weight and value respectively year-on-year. Agricultural exports during the period accounted for 4.6% and 12.6% of Iran’s total non-oil exports in weight and value respectively,” he added.

The main exported products were pistachio with shell ($604 million), tomato paste ($130 million) and pistachio seeds ($106 million).

Bakhshandeh noted that imports over the period decreased by 5% and 3.2% in weight and value respectively.

Livestock corn ($874 million), soybeans ($593 million) and soymeal and soy press cake ($381 million) were among the main imported agro products.

Hassan Abbasi Maroufan, the head of Government Trading Corporation, told Mehr News Agency that around 95% of the agriculture sector are run by the private sector.