Food security “cushion” of Iran

Food security “cushion” of Iran

Azerbaijan, Baku, May 8 / Trend /

Leyla Abdullayeva, Trend analytical centre expert

A ring of economic sanctions increasingly clenching around Iran, actualized the problem of food security in the country. Financial difficulties with the import of food, shortages and rising prices for food, force Iran to create a strategic reserve of food.

According to the forecast of the Central Bank of Iran (CBI), the expense of Iranians for food will increase from 50 to 165 per cent a year. Food prices have risen by as much as 50 per cent indicating a runaway inflation in the country. Prices have risen for almost all products - milk, mutton, beef, legumes, vegetables and fruits. Meat prices rose by 45 per cent, fresh vegetables by 156 per cent, tea 33 per cent, vegetable oil, sugar and sugar sand by 42 per cent, legumes 50 per cent and dairy products by 51 per cent.

Iran has already taken control over stocks of agricultural products. This means that on May 1 the government of Iran allocated $2 billion for ensuring the country has vital agricultural products which are practically not produced in the country. The list of essential foodstuffs of Iran mainly includes such agricultural products as rice, vegetable oil, sugar, red meat, chicken and corn. In total, the Iranian government on the import and storage of 20 kinds of basic food commodities allocated from $22 to 24 billion.

Food security of each country depends on how it can provide itself with the necessary amount of sustenance, the main indicator of which is the volume of the stock of grain remaining in the state until the next harvest. According to the International Organisation for Agriculture and Food (FAO), the safe level is the so-called carry-over stocks of grain for 60 days (about 20 per cent of grain consumed in the country during the year). Given this, Iran has also purchased 1.2 million tons of wheat. The country has bought 800,000 tons of wheat including 500,000 tons in Russia and 300,000 tons in Australia. Private importers of Iran bought about 200,000 tons of Brazilian and 200,000 tons of German wheat. All grain is purchased with immediate delivery.

A major purchase of Iran in recent months after the imposition of the United States and the European Union sanctions is from India for 60,000 tons of sugar. Earlier, Iran imported rice from India. Also from India, Iran stepped up purchases of soybean meal and purchased this product to 275,000 tons. India has already shipped about 175,000- 200,000 tons. Meal delivery to Iran scheduled for the period is from April to June.

In this case all transactions were carried out by record high prices. Iran, along with several international trading companies, is considering a scheme of payment for the supply of grain in gold and oil in barter. Thus, Iran is going to get about 200,000-400,000 tons of wheat in exchange for oil. Also, calculations in exchange for oil deliveries will be made with palm oil, rice, corn, and Indian tea.

The reason for these actions is the struggle with Western sanctions which limited the ability of the country to buy food from other sources. Because of the sanctions Iranian private mills have problems with payments which ultimately frustrate the supply of grain.

The U.S. continues to urge all countries including those of Central Asia to support sanctions against Iran. By its sanctions, the U.S. and the European Union intend to force Tehran to abandon programmes to develop nuclear weapons.

Colliers International: apartment buy/sell deals increasein Tbilisi
Colliers International: apartment buy/sell deals increasein Tbilisi
Georgia's Batumi sees decrease in real estate transactions
Georgia's Batumi sees decrease in real estate transactions
Council of Europe Development Bank talks about projects implemented in Georgia
Council of Europe Development Bank talks about projects implemented in Georgia
Loading Bars
Latest
UK records another 18,804 new coronavirus cases with 80 deaths
Azerbaijan fully ensures safety of oil and gas projects of international importance
Azerbaijan to send note to German Foreign Ministry due to Bundestag members's visit to Karabakh
Launch of industry, mining projects to open new job spots in Iran
Armenian PM admits defeat and ready for talks with Azerbaijan on Karabakh
Appeal to be sent to relevant structures due to Armenia’s attacks on civilian population of Azerbaijan
Azerbaijan created conditions for Armenian war prisoners to contact their families
Colliers International: apartment buy/sell deals increasein Tbilisi
Georgia's Batumi sees decrease in real estate transactions
Turkish Trade Ministry says carpet exports to Russia rise
Supplies of Turkish carpets to Italy on decline
Azerbaijani armed forces adequately respond to Armenian side’s provocations
Update given on civilian casualties from Armenian shelling of Azerbaijan's Aghdam
Council of Europe Development Bank talks about projects implemented in Georgia
Dutch manufacturer of equipment for poultry farming eyes to enter Uzbek market
China's exports of flat-rolled products of non-alloy steel to Georgia down
Tesla to export China-made Model 3 vehicles to Europe
Demand for Turkish-made carpets in Kazakhstan up
Kazakhstan to reduce flights on int'l routes to battle COVID-19 spreading
Armenian armed forces shelling Azerbaijani settlements
Turkey records contraction in carpet export to Iran
IMF says economy of oil-exporting countries in Caucasus, Central Asia to decline
Export of Turkmen fabrics from synthetic complex yarns to EAEU increased
Russia hopes on quickly agreed mechanism for monitoring ceasefire in Karabakh - FM
Iran joins global program to pre-purchase Coronavirus vaccine
National Bank of Georgia sells funds at another foreign exchange auction
Georgia increases export of apples
Turkmengas re-opens tender for provision of laboratory testing services
Import of Turkish carpets by Israel drops marginally
Kazakhstan increases imports from Uzbekistan amid COVID-19
Azerbaijan must not leave Karabakh conflict to future generations - assistant to president
Azerbaijani army seizes more military equipment of Armenian armed forces on battlefield (PHOTO)
AzTV channel crew undergo fire from Armenian troops in Azerbaijan's Aghdam (VIDEO)
Iran’s Bahar Azadi gold coin price falling
USAID raises awareness of fruits and vegetables export from Central Asia
E5P, EBRD support Georgian transport sector
Qatar Airways expects to keep A380s parked for years
Georgian hazelnuts exports up as of October 18
Video instructions issued for foreign visitors crossing Azerbaijan's border
Armenian Armed Forces shell cotton factory in Azerbaijan's Tartar
Iran declares value of mobile phone imports
Geostat reveals volume of Russian export to Georgia
Significantly lower prices needed to force OPEC+ cuts
Ten most COVID-impacted countries to cumulatively lose almost $700 billion in real GDP
Armenia grossly violates all laws – Azerbaijani major general
Armenia tries to mislead world community and evade responsibility - Israeli expert
Georgia reveals export statistics of major goods to Russia
Uzbekneftegaz to buy compressor via tender
Iran reveals its trade turnover with Arab countries
Armenia engaged in illegal economic activity in occupied Azerbaijani lands, top official says
Azerbaijani Prosecutor General's Office gives updates on civil casualties, damages
Azerbaijan's banking system has stabilized - MP
BP expresses support for Azerbaijani people in struggle for territorial integrity
It is impossible to find other countries elsewhere in world that would be so close to each other as Turkey and Azerbaijan - President Aliyev
Very good news comes from front every day - President Aliyev
Azerbaijan doesn't target Armenian civilians - assistant to Azerbaijani president
Armenia carrying out acts of terrorism against Azerbaijani civilians at state level - Assistant to president
France lowers import of Turkish-made carpets
Georgian domestic exports down
Azerbaijani MoD shows soldiers who liberated Hadrut from Armenian occupation (PHOTO)
Azerbaijan confirms 107 more COVID-19 recoveries
Armenian missile attack on Ganja - sign of cowardice, says Iranian MP
Speakers of Azerbaijani, Turkish parliaments meet in Baku (PHOTO)
Conflict unleashed by Armenia continues, Armenia continues to attack Azerbaijani civilians, says assistant to Azerbaijani president
Iraq's 9M2020 export of carpets from Turkey rises
Trade turnover between Georgia and Azerbaijan decreases
Armenian “Yerkrapah” Volunteer Union chairman wounded during Karabakh clashes
Turkmenistan increases export of propylene polymer to EAEU member states
Equinor updates on Karabagh, ADUA projects
Georgia slightly increases import of Turkish carpets
Armenian Armed Forces targeted pipelines in Azerbaijan's Khizi district - Prosecutor General's Office
Azerbaijan reveals income from chargeable services for 9M2020
Georgia reveals volume of external merchandise trade with US
Iran reveals its COVID-19 data for October 19
Sale of mineral fertilizers down in Uzbekistan
Shell talks on ensuring cyber security amid digitalization
Azerbaijani PASHA Bank's total assets increase
Azerbaijani Foreign Ministry to send appeals to strengthen protection of Azerbaijani diplomats abroad
Microgreens to appear on Georgian markets
Armenian servicemen wounded in Karabakh battles refusing to get back on battlefield
Turkmenistan, Russia’s Perm Krai talk over potential co-op areas
Shell maintaining optimized asset performance with digitalization
Article covering latest developments within Karabakh conflict published by International Policy Digest
Georgian spring water “Mtis Tskali” to be exported to Azerbaijan and Kazakhstan
UNICEF worried over death of children due to Nagorno-Karabakh conflict
Uzbekistan, UAE to insure export-import transactions between entrepreneurs
First commercial Etihad flight lands in Tel Aviv
EU set to gain WTO clearance for U.S. tariffs next week
Development of securities market in Azerbaijan to be accelerated - expert
Assistant to Azerbaijani president talks Armenia’s latest provocations (VIDEO)
Netanyahu congratulates Azerbaijani people on Independence Day
Kazakhstan’s Atyrau refinery to buy paints via tender
Uzbekistan to reduce labor force for cotton picking via combines
Kazakhstan's import of Belarus-made goods down year-on-year
Uzbek Central Bank reveals new exchange rates
Azerbaijani military's positions in Goygol under fire from Armenian Armed Forces
Azerbaijan's Central Bank holds deposit auction
Armenian Armed Forces fire at Azerbaijani positions on state border - MoD
Iran's raw steel production increases
SOCAR increases LPG exports to Ukraine
All news