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Domestic Economy

Agrifood Trade Deficit Reaches $2.3b in First Quarter

Iran recorded 3.99 million tons of agrifood trade deficit worth $2.36 billion in Q1 of the current fiscal year (March 21-June 21).

Exports stood at 2.4 million tons worth $1.2 billion. 

The figures indicate a 16.95% rise and a 1.83% decline in tonnage and value respectively compared with last year’s corresponding period, the Agriculture Ministry’s website reported.

Pistachio topped the list of exports in terms of value, as the country exported $204.21 million worth of it during the period.

Watermelon was the second major agricultural export product in terms of value with $138.83 million, followed by tomato with $114.62 million, apple with $65.29 million and raisins with $48.29 million.

In terms of tonnage, watermelon topped the list with 619,030 tons, followed by potato with 233,500 tons, tomato with 231,410 tons and apple with 207,260 tons. 

Agronomical exports accounted for 1.73 million tons worth $539.86 million, up 21.92% in terms of tonnage and down 0.36% in terms of value year-on-year. 

Horticultural exports stood at 492,320 tons worth $511.39 million, up 22.7% and 15.89% in tonnage and value respectively YOY.

Exports of livestock and poultry products stood at 145,140 tons worth $123.29 million, down 26.85% in tonnage and 39.38% in value YOY.

The veterinary sector exported 230 tons of products worth $2.28 million.

The fisheries sector exported 22,020 tons worth $35.77 million, posting a fall of 6.04% in total volume and 24.7% in value respectively YOY.

Exports from the forest and rangeland sector hit 3,080 tons worth $5.14 million, down 22.19% and 16.26% in tonnage and value respectively YOY.

Imports during the same period (Q1) stood at 6.4 million tons worth $3.58 billion, indicating a 7.71% year-on-year decline in volume and a 37.17% gain in value respectively.

Feed corn had the biggest share in total imports in terms of value with $644 million, followed by sunflower oil with $451.83 million, wheat with $274.83 million, barley with 238.24 and soymeal with $229.86 million.

In terms of tonnage, feed corn topped imports with 2.01 million tons, followed by wheat with 885,860 tons, barley with 841,690 tons, GM soybeans with 666,640, soymeal with 438,310 tons and sugar with 386,940 tons.

Agronomical products accounted for 6 million tons worth $2.98 billion worth of total imports, down 9.53% in tonnage and up 35.67% in value YOY.

Horticultural products stood at 346,380 tons worth $419.45 million, up 44.24% and 66.65% in tonnage and value respectively YOY.

Imports of livestock and poultry products hit 22,820 tons worth $84.91 million, down 27.15% and 36.56% in tonnage and value respectively YOY.

The veterinary sector imported 700 million tons worth $78.04 million, up 596.06% in tonnage and 499.12% in value respectively YOY.

Imports by the fisheries sector amounted to 2,720 tons worth $7.21 million, down 31.02% in tonnage and 13.62% in value YOY.

Imports from the forest and rangeland sector totaled 8,830 tons worth $11.76 million, up 39.89% in tonnage and 57.92% in value YOY.

Iran exported 8.83 million tons of agricultural and food products worth $6.21 billion in the last fiscal year (ended March 2021).

The figures indicate a 23.57% and 5.99% rise in tonnage and value respectively compared with the output of the year before.

Food and agricultural products accounted for 7.7% of Iran’s total export volume in the fiscal 2020-21, and 17.6% of the value of exports, according to the Islamic Republic of Iran Customs Administration’s spokesperson, Rouhollah Latifi.

Iran exported 346 types of agrifood products during the period under review, of which 225 types were worth over $2,000 per ton.

This is while about 70% of exported non-oil goods, excluding agrifood products, were worth less than $1,000 per ton, IRNA reported.

 

 

Water Stress

The agriculture sector has been one of the main drivers of growth in Iran’s economy amid a relative recession in other sectors in recent years. 

However, Iran Chamber of Commerce, Industries, Mines and Agriculture has warned agricultural officials in a recent report of an imminent drought that would cripple the country’s agricultural activities and hamper economic growth in this sector in the current Iranian year (March 2021-22).

The ICCIMA report says precipitation levels have drastically fallen over the last two months and will reach 142 millimeters, which is 52% less than last year’s similar period, Mehr News Agency reported.

The Majlis Research Center has released a list of Iranian provinces facing a critical water shortage: Isfahan, Hormozgan, Sistan-Baluchestan, Ardabil, Fars, Markazi and Khorasan Razavi.

The center also pointed to the decline in dam water storage levels across the country, saying that on average, only 58% of the country’s dam capacities are currently full, which indicates a critical level.

Drought has inflicted losses worth 670 trillion rials ($2.7 billion) on Iran’s agriculture sector since the beginning of the current crop year, according to Mohammad Mousavi, an official with the Agriculture Ministry.

“Assessments carried out over 11.2 million hectares of farming lands in 30 provinces show 43% of the total losses pertained to the decline in production of agronomic crops, as well as a decline of 26% in horticultural products, 13% in fisheries and livestock, and 11% in forage crops,” he was quoted as saying by Mehr News Agency.

“In addition, 4% of the total damage are to blame on challenges created in water transportation infrastructures, pools, pipes, aqueducts and springs, and 3% of losses could be attributed to water supply complications and animal feed used by nomads.” 

Noting that precipitation rate in the current crop year has decreased by 54% compared with last year and 41% compared with the long-time average, Mousavi said the decline in precipitation rate, rise in heatwaves and evaporation, as well as the uneven distribution of rainfalls, have resulted in drought and caused adverse consequences for the agriculture sector.

“Reports by Iran Meteorological Organization show 92% of the country have been affected by drought at different levels: 20% of the country’s area are facing extreme drought, 28% severe drought, 25% moderate drought and 19% of the country are on the verge of becoming abnormally dry. Only 8% of the country are having normal conditions,” he added.