Page 54 - IRANRptOct21

Severe drought ‘means Iran will have to import wheat’
not willing to suffer losses, according to local reports.
“This [policy] has led to the mass culling of livestock and rising meat supply in the market, but if this trend continues, we expect to see a severe shortage of livestock in the country in the next three to six months, and the market will undoubtedly become inflamed,” Aali was further reported as saying.
The Iranian Ministry of Agricultural Jihad is also under fire from farmers for rushing to protect consumers in a way that causes a lot of harm to agricultural businesses.
“If the government wants to continue to buy chicken at the same price, it must deliver feedstuff on time and cheaper to poultry farmers so that we do not see the bankruptcy of producers,” said Habib Asada Nejad, a local farmer, according to All About Feed.
With the Iranian government intent on saving FX, there are thought to be 3mn tonnes of grain stuck at customs clearance at seaports awaiting the payment of bills.
The US dollar was by the end of August 26 trading at 275,000 rials on Tehran’s open market, hitting 2021 highs. Farmers will be anxious that the latest deprecation will prompt the authorities to further cut down on hard currency expenditures.
The impact of severe drought means Iran will in the current Persian year (started March 21) have to import wheat, the secretary of the Iranian parliament’s agriculture committee was on August 13 cited as saying by IRNA.
“Although our strategic wheat stocks are currently in good condition, it must be put on the agenda to meet the future needs through imports,” Zabihollah A’zami told the news agency.
Agriculture ministry data reportedly shows that to date in the Persian year 4,463,000 tonnes of wheat have been purchased from farmers, and a maximum of 4,600,000 tonnes is expected.
“Latest statistics show that the country may need to import eight million tonnes of wheat this year,” A’zami was also reported as saying after assessing the likely shortfall.
In the past five years, due to self-sufficiency in wheat production and supply, Iran, a country of 84mn, has not needed to lift its ban on wheat imports.
Iran’s wheat production exceeded 14mn tonnes in the previous Iranian year. The wheat harvesting season in Iran runs from early April to mid-August.
9.1.9 Retail sector news
‘Iranian Amazon’ Digikala says it is Middle East e-commerce champion with five million product varieties
Iran’s Digikala has laid claim to the title of “prevailing e-commerce business in the Middle East”, with the company—sometimes known as the “Iranian Amazon”—saying it has moved up to offering more than five million product varieties, while boasting more than 150,000 marketplace sellers and 40mn active monthly users.
In an update on business progress, Digikala said: “Founded in 2006 with inadequate funds, Digikala is the largest e-commerce business in Iran as of today as it had a substantial share of the country's e-commerce industry in 2020.
“Despite being known as the leader of online retail in Iran, Digikala has had a constructive impact by contributing far more than just an online store in fortifying the country's business ecosystem within the e-commerce industry.” Outlining Digikala’s ambitions, the update stated: “This corporation aims to become the primary destination for online shopping, not only in Iran but also in
54 IRAN Country Report October 2021 www.intellinews.com