Page 57 - IRANRptSep22

Gain of 20% y/y forecast for Iran’s annual rice production
Price of Iranian rice up 95% in a year says government statistical agency
Iran reportedly wins access to China’s citrus fruits and honey markets
Iranian farmers are expected to produce 2.2mn tonnes of rice this Persian calendar year (started March 21), marking a gain of 20% y/y, according to Deputy Agriculture Minister Alireza Mohajer, as cited by Tasnim News Agency.
“With this increase in production, more than 70% of the country's rice demand could be supplied by domestic farmers,” Mohajer was quoted as saying.
Iran imports significant volumes of the staple food from countries including India and Pakistan.
Officials estimate Iran’s annual rice demand at around 3mn tonnes.
More than 620,000 hectares of the country’s agricultural land are used for rice cultivation, with 520,000 hectares in the northern provinces of Mazandaran, Gilan and Golestan, which lie along the coast of the Caspian Sea.
Given Iran’s increasing difficulties with water scarcity, the government has come under fire for allowing the development of too many rice paddies in water-stressed localities.
Meanwhile, the price of Iranian rice has leapt by 95% in the past year, according to a report released by the Statistical Center of Iran (SCI).
The price per kilogram of Iranian rice in the 11th month of the Persian calendar year (ended February 20) also grew by around 20% m/m, the report added. One factor in the steep price hikes is drought, with the government having to step up imports of rice to counter disappointing Iranian rice harvests.
The Iranian rice price has reached Iranian rial (IRR) 760,000 (around $3 at the free market rate), according to the SCI. However, local reports indicate that the actual price encountered by consumers on the market was around IRR1mn. That suggests the price of a kilogram of rice has actually grown by around 200% y/y.
Food prices in Iran have been growing at a much higher rate than official annual general inflation of 42%. Annual rises of around 60% or more are typical, according to government figures.
Food items subject to hefty inflation include sugar, meat, chicken and eggs, as well as cooking oil.
Iran has reportedly won access to China’s potentially highly lucrative citrus fruits and honey markets.
Exports are to start under new agreements struck by Tehran and Beijing, according to IRIB News. The deals were signed virtually on July 28 by Iranian agriculture minister Javad Sadatinejad and China’s customs chief Yu Jianhua, it said.
Sadatinejad told the media outlet that Iranian farmers and exporters could now access China’s $600-mn citrus fruit market while Iranian honey producers would have the chance to compete on China’s vast and profitable honey market.
The two deals were said to outline the required hygiene and safety protocols. Government figures show Iran’s annual production of citrus fruits amounts to around 5.5mn tonnes/year, while honey output stands at around 130,000 tonnes/year.
Agrifood shipments only account for around 15% of Iran’s annual exports to China, official customs data shows.
57 IRAN Country Report September 2022 www.intellinews.com