The Central Bank of Iran allocated $1.4 billion for the subsidized import of essential goods over the two-month period from Feb. 1 to April 20, an official with the Central Bank of Iran said.
“These resources are part of funds earmarked in the budget law for the first six months of the current fiscal year [started March 21]. Of this figure, $900 million have been supplied to importers. The supply means importers have purchased the foreign currency and the central bank has allowed the payment from the account of sellers,” Shiva Ravoshi also told IRIB News.
The budget law has approved the allocation of $6 billion for the subsidized import of essential goods at the rate of 4,200 rials per US dollar in the first six months of the current Iranian year.
According to First Vice President Es’haq Jahanigi, 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 essential items, IRNA reported.
Over 23 million tons of essential goods worth $12 billion were imported into Iran during the last Iranian year (March 2020-21), according to the spokesman of the Islamic Republic of Iran Customs Administration.
“The lion’s share of this sum amounting to 13.44 million tons worth $3.74 billion pertained to livestock and poultry feed. This volume accounted for 58% and 31% of the weight and value of last year’s total essential goods imports respectively,” Rouhollah Latifi was also quoted as saying by IRNA.
Also known as necessity goods, essential goods are products consumers will buy, regardless of changes in income levels.
The spokesman added that corn stood at 9.78 million tons worth $2.5 billion, soy cake for 1.82 million tons worth $793.94 million and barley for 1.83 million tons worth $457.32 million.
“Some 2.34 million tons of oilseeds worth $1.25 billion, in addition to 1.14 million tons of refined edible, semi-solid, liquid and unprocessed oils worth $1.06 billion, were imported during the period under review. Imports also included 14,798 tons of human medicine, medical equipment worth $1.64 billion and 451,000 tons of livestock and poultry medicines worth $64.16 million,” Latifi said.
“Our food imports also included 936,809 tons of rice worth $868.53 million, 3.02 million tons of wheat worth $841.23 million, 1.01 million tons of unrefined sugar worth $370.66 million, 64,822 tons of dried tea leaves worth $329.12 million, 175,260 tons of pulses worth $144.04 million, 30,487 tons of frozen or cold heavy livestock meat worth $133.27 million, 9,801 tons of butter worth $51.46 million and 4,422 tons of fresh light livestock meat worth $29.17 million.”
According to the IRICA spokesman, imports of essential goods for industrial purposes and production mainly consisted of 51,415 tons of industrial machinery worth $510.8 million, 207,583 tons of different types of paper worth $190.1 million, 231,064 tons of paper pulp worth $181.06 million, 252,204 tons of chemical fertilizers worth $153.08 million, 9,074 tons of chemical pesticides and insecticides worth $86.27 million and 6,019 seeds of different kinds of plants worth $83.63 million.
The IRICA spokesman concluded that 76,716 tons of heavy vehicle tires worth $282.84 million were imported over the period.
According to Mehdi Mirashrafi, the head of Islamic Republic of Iran Customs Administration, Iran imported 3.5 million tons of essential goods worth $9.7 billion from China, 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.
According to Mojgan Khanlou, an 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 fiscal 2021-22.
“As such, prices will increase, demand will decline and a relative recession will come eventually,” Kaveh Zargaran, chairman of the commission and secretary of the Federation of Iranian Food Associations, was quoted as saying.
Amir Talebi, an official with the Government Trading Corporation of Iran, said recently that up to 2.8 million tons of essential goods, including rice, vegetable oils and unprocessed sugar, which were purchased in the last Iranian year (March 2020-21), will be imported during the first five months of the current year (March 21-Aug. 22).
