Iran's agriculture exports to Russia facing obstacles
Tehran, Iran, Jan. 7
Heavy taxes, lack of exports consistency and small holdings are the major obstacles for Iran's agricultural exports to Russia.
“Since Iran is not a member of the Eurasian Economic Council (EEC), the country's export to Russia is not compatible with exports from the EEC member countries," said Chairman of the Agriculture Committee of the Iran Chamber of Commerce Gholamali Fareghi, Trend reports citing IRNA.
Another problem that impacts Iran's agriculture exports to Russia is that due to various regulation changes, Iranian exporters cannot stay committed to exports consistency and have steady exports to Russia, the official noted.
Small holdings is another challenge for agricultural exports to Russia.
"There are no major land owners or producers or holdings that can meet the market needs in every situation. Big holdings and land owners will face losses in crisis situations."
He indicated that the value of Iran's agricultural exports to Russia is annually $150-$200 million.
"Russia has a suitable market for Iranian goods and Iran can export between $10 to 20 billion goods to Russia if the trade problems are solved. The Iran-Russia trade value in the last Iranian year (started March 21, 2017) was $950 million; Iran's share of exports to Russia was $310 million, while $640 million belonged to Russia's exports to Iran," he said.
"Iran has exported $174 million goods to Russia, while the exports from Russia to Iran were worth $852 million during the past eight months of this Iranian year," he said.