Officials Probe Decline in Trade Turnover With Iraq

Iran’s exports to Iraq reached 8.66 million tons worth $2.96 billion during the first five months of the current fiscal year (March 21-Aug. 22), registering a 28% and 8% decline in terms of weight and value respectively compared with the corresponding period of last year, according to the head of Iran-Iraq Chamber of Commerce.
“Unfortunately, after the abolition of import subsidies, the price of Iranian goods rose above global prices, and the first reaction of buyers was to resist and decline to buy Iranian goods,” Jahanbakhsh Sanjabi-Shirazi was also quoted as saying by ILNA.
The government decided to overhaul the import subsidy system in May, which led to a dramatic rise in prices.
The government move saw the abolition of the controversial practice of allocating cheap dollars at the rate of 42,000 rials per dollar, locally known as the Preferential Foreign Currency, to import essential goods, including corn, soymeal, unprocessed oil, oilseeds and barley, in addition to wheat, flour and medicine.