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January 2003 / No. 21


Trade & Business

Second Thought on Food Imports

Ministries of Commerce and Agriculture Jihad have estimated that more than four million tons of essential supplies (including wheat, rice, cooking oil and sugar) will be imported in 2003 to meet Iran’s domestic market need.

According to statistics issued by the Ministry of Agriculture Jihad on domestic production of these supplies, due to increased rainfall, domestic rice production for example will reach two million tons next year. Therefore the importation of rice, an essential part of any Iranian dish, will be reduced by 100,000 tons from 2002, to about 600,000 tons in 2003. This rice will be distributed through coupons. Furthermore, due to the anticipated purchase of 8.5 to 9 million tons of domestic wheat the government will only need to import a further 2.5 million tons. In recent years, due to adverse weather conditions and continued droughts, Iran has been forced to become one of the world’s biggest wheat importers, with imports exceeding 6 million tons in some years. Statistics show that an equivalent of 500,000 tons of cooking oil will be imported in 2003, which indicates no significant rise over 2002 importation levels. The Ministry of Commerce has declined to comment on the levels of sugar importation and has assigned the task to the Headquarters for Campaign Against Economic Corruption. It is believed that purchase of sugar from corporations located on the border will be hampered by restrictions in 2003, in an attempt to control the sugar market and prevent the entry of foreign sugar.

The Economy Council has allocated $1.2 billion for the purchase of these supplies. The Council, in accordance with its annual tradition, has permitted the importation of 50% of the 2003 supplies in the second half of 2002. To this end, the Ministry of Commerce has been granted $600 million to purchase half of 2003’s supplies.

 

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