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Increasing manufacturing of household appliances in Iran can guarantee exports - ICCIMA

Business Materials 5 May 2021 14:56 (UTC +04:00)
Increasing manufacturing of household appliances in Iran can guarantee exports - ICCIMA

BAKU, Azerbaijan, May 5

By Elnur Baghishov – Trend:

Increasing the manufacturing of household appliances in Iran and developing the market in this field can guarantee exports, a member of the industry committee of the Iran Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA) Habibollah Ansari told Trend.

According to him, the main issue is the increase of manufacturing should be the focus on the quality of goods in order to make these goods exportable.

Ansari added that copper, petrochemical, and steel raw materials are used in this industry. Domestic production of these raw materials brings added value to the country.

The official noted that there are a number of problems in the household appliances industry. One of these problems is the lack of coordinated decisions in government.

“Another problem is related to the supply of raw materials and spare parts. Some of the raw materials are supplied domestically. For example, steel is one of the raw materials in the manufacturing of household appliances. It is provided through the Iran Mercantile Exchange (IME). The presence of brokers in this industry leads to higher prices for raw materials,” he said.

Ansari stressed that in addition, some of the spare parts are imported. However, there are more serious problems in this regard. Because foreign currency must be provided for the import of spare parts. Also, sanctions and the inability to transfer money for purchased spare parts are included in these problems.

The committee member said that industrial enterprises manufacturing household appliances faced liquidity problems.

“On the other hand, the coronavirus pandemic and the decline in the Iranian market have reduced the purchasing power of citizens,” he added.

Ansari emphasized that it is necessary to reduce customs duties and use the spare parts that are produced domestically in order to compete in the field of export.

Reportedly, the Ministry of Industry, Mine, and Trade of Iran plans to manufacture 1.2 million TVs, 1.9 million refrigerators, 1.05 million water conditioners, and 1.08 million washing machines in the current Iranian year (from March 21, 2021, through March 20, 2022).

Iran manufactured more than 14 million household appliances in the last Iranian year (from March 20, 2020, through March 20, 2021). This is an increase of 71 percent compared to the preceding Iranian year (from March 21, 2019, through March 19, 2020).

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