Tehran, Kabul plan to ink urea fertilizer export deal

Iran Materials 3 January 2012 13:38 (UTC +04:00)

Azerbaijan, Baku, Jan. 3 / Trend F.Milad/

Iran may finalize a deal with Afghanistan by March to export urea fertilizer to the neighboring country, Pana news agency reported.

For the time being, Iran exports the petrochemical product to India, Bangladesh, Sri Lanka and Pakistan. Urea fertilizer is strategically important in food industries.

Iran has the capacity to produce 4.4 million tons of urea fertilizer annually, of which some 2 million tons is used in the domestic market.

According to an agreement signed in Tehran on December 27, Iran will export up to one million tons of oil products such as gas oil, gasoline and jet fuel to Afghanistan.

The deal was signed by Iranian Deputy Oil Minister Alireza Zeighami and Afghan Commerce and Industries Minister Anwar-Ul-Haq Ahady.

Gas oil will account for 70 percent of the exports, while gasoline and jet fuel will account for 20 percent and 10 percent, respectively.

In June, the two countries signed a memorandum of understanding for exporting 300,000 tons of oil products to the neighboring country in six months.

The value of trade between Iran and Afghanistan stood at around $2 billion in the first 11 months of 2011, of which $1.5 billion was Iran's exports to the neighboring country.

Iran mainly exports pharmaceuticals, cement, iron and steel products, detergents and gasoline to Afghanistan.

Afghan Ambassador to Tehran Abidollah Abid has said the annual trade between Tehran and Kabul could reach $6 billion.