Iranian government to save $1.6 billion by halting cheap rated dollar for poultry feed import
Azerbaijan, Baku, Oct. 29 /Trend, N. Umid
The Iranian government will save $1.6 billion, based on the official rate of 24,869 rials per USD, while allocation of foreign currency at the rate of 12,260 rials for importing poultry feed has been halted, Hedayat Asghari, the head of Iran's Egg Producers' League said, ISNA news agency reported.
Asghari stated the administration should use some part of this income to support producers.
He went on to note that halting the allocation of a cheap rated dollar for importing poultry feed will increase costs of egg production by 70 per cent.
Last week the Iranian administration announced it will no longer use a USD exchange rate of 12,260 rials for the import of all staple foods excluding wheat.
Earlier, the administration of President Hassan Rohani has pledged to provide importers of staple foods such as wheat, with a dollar at the subsidized rate of 12,260 rials till the end of the current solar year( ended on March 21, 2014) in order to curb price hikes on the domestic market.
Some experts previously warned about a deficit in the budget due to the allocation of a subsidised rate of 12,260 rials to good imports.
In August, ISNA quoted head of the Imports Association, Mohammad-Hossein Barkhordar as saying the Iranian government may face a budget deficit if it uses the dollar at a subsidised rate of 12,260 rials by the end of the current solar year to import staple foods.
"Parliament has approved the import of staple foods using the Forex Centre rate of 24,770 rials, but this may bring a price shock to the market," he said.