Up to 2.8 million tons of essential goods, including rice, vegetable oils and unprocessed sugar, that were purchased in the fiscal 2020-21 will be imported during the first five months of the current Iranian year (March 21-Aug. 22), a senior official with Government Trading Corporation of Iran said.
“A total of 5 million tons of essential goods were imported during last [fiscal] year [March 2020-21], that is 10 times as much the volume imported in the year ending March 2018,” Amir Talebi was also quoted as saying by ILNA.
Also known as necessity goods, essential goods are products consumers will buy, regardless of changes in income levels.
“The government will allocate $6 billion for the import of essential goods at the subsidized rate of 4,200 rials per dollar in the first six months of the current Iranian year [started March 21],” First Vice President Es’haq Jahangiri was quoted as saying by IRNA.
“Imports of pharmaceuticals and medical devices needed by Health Ministry will receive $1.5 billion of the sum and the rest will be given to Agriculture Ministry and the Ministry of Industries, Mining and Trade for the import of other essential goods.”
According to Mojgan Khanlou, a senior official with the Plan and Budget Organization of Iran, the government is allowed to gradually discontinue the allocation of subsidized forex to import essential goods during the first half of the fiscal 2021-22.
“Prices will increase to some extent and demand will decline and a relative recession will eventually prevail,” Kaveh Zargaran, the secretary of the Federation of Iranian Food Associations has been quoted as saying.
Imports of all essential goods, except corn, declined last year compared with the year before, Domestic Commerce Commission of Iran Chamber of Commerce, Industries, Mines and Agriculture recently reported, citing figures released by the Central Bank of Iran.
According to Mehdi Mirashrafi, the head of the Islamic Republic of Iran Customs Administration, a total of 23.1 million tons of essential goods, including corn, cellphones, rice, soybean meal, oilseeds, wheat and unprocessed oils, worth $12 billion were imported in the last fiscal year (March 2020-21).
Iran imported 5 million tons worth $9.6 billion from the UAE, $4.3 billion from Turkey, 2.2 million tons worth $2.1 billion from India and 1.2 million tons worth $1.8 billion from Germany in the year to March 20.
Iran’s total foreign non-oil trade stood at 145.7 million tons worth $73 billion in the fiscal 2020-21.
Exports accounted for 112 million tons worth $34.52 billion and imports constituted 34.4 million tons worth $38.5 billion of the sum.
Iran’s main exports included gasoline, natural gas, polyethylene, propane, and pistachio, with the latter alone earning $1.2 billion.
“The main export destinations were China with 26.6 million tons worth $8.9 billion, Iraq with 25.6 million tons worth $7.3 billion, the UAE with 15.2 million tons worth $4.6 billion, Turkey with 6.3 million tons worth $2.5 billion and Afghanistan with 7 million tons worth $2.2 billion. These five countries imported more than 80 million tons of non-oil goods worth $25.7 billion,” he was quoted as saying by Mehr News Agency.
China, Iran’s biggest trading partner, accounted for 26% of Iran's total non-oil exports, as 26.58 million tons of non-oil goods worth $8.95 billion were shipped from Iran to China during the period.
Pistachio, nuts, minerals, construction materials, methanol, carpet, iron ore, glassware and fruits were the main types of goods exported from Iran to China in the last fiscal year.
Imports from China totaled 3.54 million tons worth $9.76 billion during the year to March 21, 2021, to account for 10.6% of the total volume of Iran's imports and 25.3% of the total value of imports during the period. Industrial machinery and raw materials, medical equipment, paper, wood, textile, auto parts and sports equipment were Iran's main imports from the South Asian state in the fiscal 2020-21.
“Iran’s foreign trade reduced by 25 million tons due to sanctions and the Covid-19 pandemic,” the IRICA chief said, adding that the country’s trade deficit stood at $4 billion.
