Iran’s Nuts Exports Face Significant Decline, Calls for Policy Changes

Iran's Nuts Exports Face Significant Decline, Calls for Policy Changes

Reporting by Keinia, quoting ISNA, the Head of the Nuts Exporters Union announced a 20% decline in nuts exports over the past three years.

The Head of the Nuts Exporters Union highlighted that the country’s total nuts exports have decreased by 20% over the past three years. He noted, “In the not-so-distant past, we had more than 35 export items in our portfolio. However, exports have now been limited to just three products: pistachios, dates, and raisins, with figs only contributing partially.”

According to ISNA, Mohammad Reza Farshchian, Head of the Nuts Exporters Union, spoke during today’s press conference on the challenges facing nuts exports. He expressed regret over the fact that the union once proudly exported more than 35 different products, ranging from almonds and cumin to apricots and sour cherries. However, year by year, items such as almonds, dried apricots, cumin, and apricot leaves have been removed from the export basket. Now, exports are primarily focused on pistachios, dates, and raisins, with figs playing a smaller role.

He questioned, “Do the producers of these products still have the same position in exports? Where do they stand now? At one point, Iran’s name was synonymous with carpets, caviar, saffron, and pistachios. Carpets and caviar are no longer significant, and saffron is increasingly handled by neighboring countries. How long will pistachios remain? Iran was once the leading exporter of pistachios, but the U.S. has now taken the lead.”

Farshchian continued, “We cannot limit the world. With the rules and conditions we impose on ourselves, we are becoming more restricted each day. Fortunately, the new government shares common ground with us, and Mr. Pezhkian has expressed support for a unified exchange rate.”

He added, “The Minister of Economy has reiterated this multiple times, but we are still waiting. It’s crucial to act swiftly; otherwise, the opportunity may pass. Our agricultural exports need immediate attention to return to their former state.”

Farshchian went on to say, “Our nuts export statistics have seen a 20% decline over the past three years. In 2018, before the currency repatriation mandate, nuts exports were valued at around $3 billion. Last year, this figure dropped to $1.3 billion, which is deeply disappointing. Pistachios, which now sell for $7, are being priced with an export commitment of $9.8.”

He emphasized, “The reduction in both production and exports is directly linked. Currently, our main export products are raisins and dates. We have the capacity to export 170,000 tons of pistachios annually, but customs data shows that in the first half of this year, only 46,000 tons of pistachios, 28,000 tons of raisins, and 2,000 tons of figs were exported, with figs nearly dropping out of the export market.”

Factors Behind the 20% Decline in Iran’s Nuts Exports

Farshchian stressed that a lack of attention to the concerns of private sector advocates and exporters has negatively impacted exports. “Decisions are being made behind closed doors and implemented without practical insight. In 2019, when exporters were mandated to bring their foreign exchange earnings into the country, this policy temporarily boosted the economy, and the exchange rate was unified. At that time, the free market rate was around 11,000 tomans, the same as the NIMA rate. When exchange rate manipulations are eliminated, exports and imports follow a logical path.”

He expressed optimism that, with a unified exchange rate and changes in Central Bank policies, the situation could improve. “The Central Bank is overstepping its mandate, taking on responsibilities that belong to the Ministry of Industry, Mines, and Trade, while neglecting its supervisory role.”

Farshchian pointed out that the Central Bank allows exporters to sell their foreign exchange earnings to car manufacturers at an agreed-upon rate but still interferes with this rate through a newly established exchange platform. He argued that if the rate is truly meant to be negotiable, then Central Bank intervention must be minimized. The allocation of export quotas to certain sectors, like car manufacturers, must also be reconsidered.

He continued, “When an exporter makes a long-term commitment, it requires time to repatriate the currency. If we’re talking about an agreed-upon rate, then Central Bank involvement—both direct and indirect—should be nonexistent.”

Based on available statistics, Farshchian said, “Iran produces 200,000 tons of pistachios annually, ranking second globally, and produces 200,000 tons of raisins, ranking fourth. With 1.4 million tons of dates produced annually, Iran ranks first worldwide. Additionally, we produce 30,000 tons of figs each year, a figure unmatched globally. Unfortunately, we are struggling with exports.”

He stressed that the government’s approach must prioritize exports; otherwise, production will suffer globally. By removing export barriers, he said, nuts exports could grow from $1.3 billion to $5 billion, marking a 400% increase. If these challenges aren’t addressed, we may not even reach this year’s export figures.

The Head of the Nuts Exporters Union noted that in 2018, nuts exports amounted to $3 billion. Based on the current customs baseline, this figure should have increased to $5 billion. Unfortunately, exports are stuck at around $1.3 billion to $1.4 billion. “Despite the ban on the import of cashews, almonds, and walnuts, these items are widely available in stores, largely due to smuggling,” he added.

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