• Domestic Economy

    Monthly Agrifood Exports Exceed $350 Million

    Iran exported 865,780 tons of agricultural and food products worth $351.45 million in the first month of the current fiscal year (March 21-April 20), the latest data released by the Agriculture Ministry show.

    The figures indicate a decline of 18.69% in tonnage and 25.34% in value year-on-year.

    Watermelon topped the list of exports in terms of value with $55.9 million.

    Tomato was the second major agricultural export in terms of value with $43.64 million, followed by pistachio with $20.81 million, apple with $17.55 million and potato with $15.54 million.

    In terms of tonnage, watermelon topped the list with 267,940 tons, tomato with 95,110 tons, followed by apple with 64,390 tons, potato with 41,210 tons and onion, shallot and garlic with 34,270 tons.

    Agronomic products accounted for 675,550 tons worth $188.51 of total exports, down 14.18% in terms of tonnage and down 18.35% in terms of value YOY. 

    Horticultural exports amounted to 133,190 million tons worth $98.15 million, down 38.29% in terms of tonnage and down 47.12% in value YOY respectively.

    Exports of livestock and poultry products reached 48,330 tons worth $46.57, down 8.91% in tonnage but up 16.08% in value YOY.

    The veterinary sector exported 36 tons of products worth $168,000, down 40.604% and 39.87% in weight and value YOY respectively.

    The fisheries sector exported 7,900 tons worth $16.66 million, posting a rise of 3.89% and 33.17% in volume and value respectively YOY.

    Exports from the forest and rangeland sector hit 76 tons worth $1.39, down 26.16% in tonnage but up 4.23% in value YOY.

    Iran exported 8.48 million tons of agricultural and food products worth $5.23 billion in the fiscal 2021-22 (ended March 20).

     

     

    Imports Exceed $970 Million

    Agrifood imports reached 1.67 million tons worth $973.94 million during the period under review, indicating a 14.18% and 10.26% YOY growth in volume and value respectively.

    Wheat worth $306.02 had the biggest share of imports in terms of value, followed by rice worth $130.23, feed corn worth $122.83, soybeans worth $101.85 million and edible oils worth $60.54 million.

    In terms of tonnage, wheat topped imports with 762,700 tons, followed by feed corn with 353,370 tons, soybean with 145,380 tons and soymeal with 141,420 tons.

    Agronomic products accounted for 1.57 million tons worth $830.95 million of total imports, up 16.79% and 16.5% in tonnage and value respectively YOY.

    Horticultural products stood at 80,460 tons worth $89.5 million, down 27.41% and 28.11% in tonnage and value respectively YOY.

    Imports of livestock and poultry products hit 15,300 tons worth $40.06 million, up 273.49% in tonnage and up 134.96% in value YOY.

    The veterinary sector imported 285 tons worth $9.75 million, up 51.02% and down 55.71% in tonnage and value respectively YOY.

    Imports by the fisheries sector amounted to 160 tons worth $630,000, down 88.74% and 77.35% in tonnage and value YOY respectively.

    The forest and rangeland sector’s imports totaled 2,410 tons worth $3.05 million, up 14.18% and 10.26% in tonnage and value YOY respectively.

    The export and import volumes indicate that Iran recorded an agrifood trade deficit of 802,650 tons in tonnage and $622.49 million in value during the period under review.

     

     

    Impact of Drought 

    The growth in agrifood imports comes amid the rising import of essential goods and a decline in production, which is partly due to water shortage and drought.

    Also known as necessity or basic goods, essential goods are products consumers will buy, regardless of changes in income levels. 

    Unloading of essential goods at Iranian ports of entry reached 2.17 million tons during the first month of the current Iranian year (March 21-April 20), registering an 11% rise compared with the similar period of last year, according to figures released by the Ports and Maritime Organization of Iran.

    In a report, Iran Chamber of Commerce, Industries, Mines and Agriculture has warned agricultural officials 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 fallen drastically.

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

    “Drought has inflicted 670 trillion rials [$2.4 billion] in losses on Iran’s agriculture sector since the beginning of the current crop year,” Mohammad Mousavi, director general of the Agriculture Ministry’s Crisis Management Department, said in June 2021.

    Assessments carried out over 11.2 million hectares of farmlands in 30 provinces show 43% of the total losses pertained to the decline in agronomic production, as well as 26% to horticultural products, 13% to fisheries and livestock, and 11% to forage crops, he said in June last year.

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

    “Beside the decline in precipitation rate, an increase in heatwaves and evaporation, and the inappropriate distribution of rainfall, have resulted in drought that had adverse consequences for the agriculture sector.”

    Reports by Iran Meteorological Organization show that 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 becoming abnormally dry, while only 8% of the country are having normal conditions.