Page 59 - IRANRptJun22

Foreign electronic manufacturers that enter Iran generally set up in dedicated special economic zones, where they avoid heavy import duties and create employment in remote areas of the country. Television production deals with Samsung and LG have been somewhat successful and have enabled the companies to lower their product pricing for the Iranian consumer.
9.1.7 Healthcare sector news
Prices of essential drugs ‘quadruple in Iran amid move to cut major subsidy’
Prices of some essential drugs have reportedly more than quadrupled in Iran amid plans announced by the cash-strapped government to end a major subsidy.
Skyrocketing prices of pharmaceuticals were likely to surge further when the government officially withdraws the subsidy, a prospect that has triggered alarm and anger in Iran, RFE/RL reported.
In 2018, then-president Hassan Rouhani brought in the subsidy to provide billions in subsidised dollars for Iranian manufacturers to import shipments of essential food and medicine. The objective was to control prices even though the Iranian rial was severely depreciated in the wake of the US reinstating swingeing sanctions against Tehran. There is now anxiety that the ending of the subsidy will cause Iranian drug companies to hike prices.
"Medication is not something you can live without," a Tehran resident who did not want to be named told RFE/RL's Radio Farda. "Many people may not be able to afford medicine anymore. But they will be forced to buy them at any price just to save their lives."
Ending the subsidy would save the current Raisi administration around $9bn annually state media reported.
There is, meanwhile, confusion caused by contradictory statements from officials over whether the government has already cut the subsidy. Amid that confusion, prices have continued to ascend at a rapid rate.
US sanctions on Iran supposedly exclude food and medicine. But in reality, the restrictions have made it difficult for Tehran to purchase some drugs, according to Human Rights Watch.
9.1.8 Agricultural sector news
Iran’s wheat harvest ‘expected to fall 20% this year amid persistent and severe drought’
Drought takes toll on Iranian pistachio exports
Iran, the Middle East’s top wheat producer, is expected to see production drop 20% this year to 12mn tonnes, which is 17% below the 5-year average, according to Gro Intelligence.
The country’s wheat-growing areas have experienced “severe” levels of drought since mid-2021, according to Gro’s Drought Index, weighted for wheat acres in Iran using a climate risk navigator.
On May 29, Iranian Oil Minister Javad Owji told the semi-official Iranian news agency the Young Journalists Club (YJC) that Iran and Russia have finalised an agreement for the supply of 5mn tonnes of wheat and grain to Tehran. The deal was one of several signed during a visit by a Russian economic and commercial delegation last week.
In March, Iranian Ambassador to Moscow Kazem Jalali said Iran intended to increase grain imports from Russia. He noted that in 2021, Iran, ranked first for the import of wheat from Russia, with 7mn tonnes of Russian grain shipped.
Drought has taken a toll on Iran’s pistachio nut exports. Reporting shipments worth $914.4mn in the last Persian calendar year (ended March 20), down 33% y/y, the Islamic Republic of Iran Customs
59 IRAN Country Report June 2022 www.intellinews.com