Agricultural prices skyrocket as Iran exports to fill economic gaps
As food costs continue to climb in Iran, agricultural products like fruits and vegetables have seen sharp increases with exports driving up domestic prices.
As food costs continue to climb in Iran, agricultural products like fruits and vegetables have seen sharp increases with exports driving up domestic prices.
Gholamreza Nouri Qeziljeh, Iran’s Minister of Agriculture, attributed some of the price increases to sanctions, which targeted the country's kiwi crop.
However, he acknowledged that the same kiwis are being exported this year, and this has further inflated their cost on the domestic market.
"We need to examine how to reform this process," he said, suggesting that the government may need to take action to prevent further price surges.
Kiwis are now being sold for up to 2,400,000 rials ($2.7) per kilogram, a price that eats up nearly two percent of the average monthly salary.
Tasnim News, a media outlet linked to Iran’s Revolutionary Guards, reported on Saturday that, based on field observations, kiwi prices in Tehran range from $1 to $2.7 per kilogram.
Prior to the increase, the ILNA news agency warned that the purchasing power of Iranian workers has plummeted by a quarter this year, compared to the last decade.
The kiwi price hikes come on the heels of similar price increases for potatoes. Reports indicate that potatoes in Iran have risen to 900,000 rials per kilogram (around $1), spurred in part by extensive exports.
Mehrdad Lahoti, a member of the Iranian parliament, said that while Iran once exported over one million tons of potatoes, poor management has now led to rotting stockpiles in warehouses. "Iran has become an importer of this product," Lahoti said.
To stabilize soaring potato prices, Iran is importing 50,000 tons of the staple vegetable, according to deputy agricultural minister Akbar Fat’hi.
Further complicating the issue, a review of customs data reveals that Iran exported 307,000 tons of potatoes in the first nine months of the year at a price of just 140,000 rials (15 cents) per kilogram, with much of it going to Iraq and Afghanistan.
In neighboring Iraq, Iranian agricultural exports are also causing economic strain. Iraqi tomato farmers in Basra have been dealing with price crashes due to the influx of cheaper Iranian tomatoes, which often flood the local markets.
According to Al Jazeera, farmers in Basra struggle to cover their production costs as tomatoes imported from Iran undercut local prices.
Back in Iran, political leaders are offering mixed explanations for the rising prices. President Masoud Pezeshkian argued that external sanctions are driving up costs.
"The enemies think that if they siege us, we will die from hunger," he said on Saturday.
Morteza Fazaeli, a member of Supreme Leader Ali Khamenei’s office, said on Saturday that domestic mismanagement is a key factor in the country’s economic woes.
With food prices continuing to rise and the purchasing power of citizens steadily declining, many Iranians are increasingly confronted with a difficult economic reality as the rial loses value by the hour, now being exchanged at 900,000 per dollar.
