Prices for agricultural products rise in Iran

Prices for agricultural products rise in IranExperts believe that it is necessary to take advantage of every export opportunity 

 

US sanctions against Iran are being fully implemented. In this regard, import potential of the country has dropped considerably. The restrictions imposed are slowly exerting their effects. Thus, prices of the country's agrarian products have already begun to grow.

"Prices for greenhouse tomatoes and cucumbers in Iran increased and reached 110,000 rials (roughly $2.61) and 65,000 rials (roughly$1,54) per kilogram, respectively,” Chairman of Iran's Fruits and Vegetables Association Asadollah Kargar told Trend.

This, in turn, means access to new markets for agricultural products in Azerbaijan. Can we take advantage of this opportunity? Is it possible to export agricultural products from Azerbaijan to Iran?

Member of the Parliamentary Committee on Economic Policy, Industry and Entrepreneurship, Azer Badamov, noted that price hikes in Iran increase our access to the country's market and our export capacities. "At present, our trade turnover is not so large in terms of exporting our agricultural products to Iran. If the course of political processes further increases the price growth, that means creating a new opportunity for us. The prices of agricultural products in Azerbaijan are much lower than in Iran. It gives us access to Iranian market. In general, agricultural products in Azerbaijan are exported to a number of countries. Russia occupies a special place among them as 80 percent of our products are exported to Russia. However, in recent years, state care and attention to agriculture has grown. Reforms in the agrarian sector are bearing fruit. Quality agricultural products are exported to most markets in the world. In this regard, access to new markets is of great importance. The head of state also pays special attention to this issue. The volume of production in the country is increasing. Increase in production of agricultural products that meet modern standards has a positive impact on the country's overall export potential. Thus, we can carry out export to different countries of the world, including Iran,” he said.

According to agricultural expert Nijat Nasirli, there are various reasons for price hikes in Iran. "If we analyze the economy of Iran, we can see that in recent years, large amounts of funds have been invested in the agrarian sector. Particular attention is paid to the production of fruits and vegetables. Iran is located in favorable geographical position. It has access to the Persian Gulf and provides the Iraqi market, and a large part of the Syrian market with agrarian products. Thanks to the Persian Gulf, Iran has provided its access to many countries around the world, and even to North African countries. In general, the agrarian potential of Iran is very large. In this regard, the influence of Iranian products on the Azerbaijani market is much higher as the Iranian industry has grown significantly. Because of the large production volumes, the cost of the product is low. Iran and Azerbaijan are neighbors. Our trade relations are getting better each year. In this sense, trade relations between our countries can be further expanded in the future. But Azerbaijan is not yet exporting goods to Iran. Currently, the fruit and vegetables season is over. Agricultural products are stored in special warehouses. Certain products can be exported to Iran,” added the expert.

Economic expert Fikret Yusifov emphasized that access to new markets is of great importance for us. "Azerbaijan is not exporting agricultural products to Iran yet. Iran itself is a great agrarian country. Production of agricultural products is at a high level there, and prices are affordable. Price increase of 10-15% is not considered a major increase for Iran. Fruit and vegetables are very cheap there. In general, I think that the rise in prices for products is related to political reasons. The sanctions imposed on Iran are giving their results. This, of course, affects prices as well. Limiting the import capacity of Iran leads to price hikes. Russia is the largest market for agrarian products of Azerbaijan. Even if we increase our current export potential 15-20 times, we can not meet the needs of Russian markets. Interest in Azerbaijani products in Russian markets is great. But in any case, access to new markets is important. In this regard, it is necessary to take advantage of every opportunity,” Yusifov noted.


Shabnam Mehdizade

20.11.2018 17:39 / Hits: 60 / Print
 
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