Page 63 - IRANRptAug22

Iran ‘fears war in Ukraine will halt vital wheat imports’
Officials have previously come under fire for permitting water 'thirsty' crops, such as rice, to be cultivated in parts of the country not blessed with an abundance of water.
The war in Ukraine looks set to bring a halt to shipments of vital wheat supplies needed by Iran within days, according to the chairman of Iran’s National Union for Agricultural Products, ILNA has reported.
Some 25-30% of Iran’s grain imports are provided by Ukraine and Russia, Reza Nourani was quoted as saying. The lack of road and maritime transportation security amid the conflict would likely mean shipments from Ukraine would very soon stop, he was cited as saying.
Ukraine is one of Iran’s target countries for expanding overseas wheat farming but Nourani reportedly said: “We’ll have to wait for the end of war to be able to continue with trade relations.”
Noting that highly fertile land available in Ukraine convinced overseas farmers from various countries, including Iran, to invest in the country, he was also reported as saying: “We hope the war will not lead to the destruction of their investments.”
Iran has been substantially expanding its importation of wheat in the face of difficulties with drought that has undermined its grain output.
In the previous Persian year (ended March 20, 2021), 10.5 million tonnes of wheat were consumed in Iran, official data showed.
Iran imports essential commodity wheat using its subsidised USD rate of 42,000 rial per dollar. The free market rate is 263,200 per dollar.
9.1.9 Electrical appliances sector news
Production of Iranian household appliances up 7.5% in last Persian calendar year
Iran's production of household appliances moved up by 7.56% in the last Persian calendar year (ended March 20), according to Statistical Centre of Iran (SCI) data.
Over the past few years, the Iranian government has pursued a strategy of building up support for domestic production in various non-oil sectors to offset effects of US sanctions while at the same time cutting the economy's dependence on oil revenues.
Another important factor that has boosted Iranian manufacturers of home appliances is the ban Tehran has applied to imports of white goods from South Korea, largely items produced by giants Samsung and LG. The ban was brought in as a response to Seoul’s support for the swingeing US sanctions that are undermining the Iranian economy. Grey and black-market imports of banned home appliance products continue, however. The smuggled imports flow into Iran from Iraq and other neighbouring countries.
The data showed 6,273,600 large household appliances were produced in the 12 months, including televisions, refrigerators and freezers, washing machines, air conditioner units. Among the mentioned products, a decline in output was only posted for air conditioners.
9.1.10 FMCG sector news
Iranian producers ‘eager to take Russia market shares vacated by US, European brands in war exit’
Iranian manufacturers are eager to expand their fast moving consumer goods (FMCG) and other brands in Russia following the exit of European and US brands in response to the military conflict in Ukraine, according to Oleg Voitsekhovsky, managing director of the Russian Council of Shopping Centres (RSTC).
63 IRAN Country Report August 2022 www.intellinews.com