No More Subsidized Currency for Importing Eyed Eggs

EghtesadOnline: The government has discontinued the allocation of subsidized foreign currency for the import of eyed eggs, the head of Iran Fisheries Organization said.

News ID: ۷۴۹۶۲۸

05 February 2020

“From now on, foreign currency needed for the import of eyed eggs must be procured from the export earnings of non-oil products [petrochemicals, steels and minerals] traded through the secondary FX market [known by its Persian name Nima],” Fars News Agency also quoted Nabiollah Khunmirzaei as saying.

Noting that the measure is an opportunity for boosting domestic production, the official said, “Iran imports 200 million eyed eggs annually, as local production only accounts for 25% of the country’s total demand.”

According to Financial Tribune, eyed egg is the most recent item removed from the category of products labeled as essential goods (or Group I products) and included in Group II. The other products, which have so far fallen out of favor with the government, were red meat, butter, pulses, tea and sugar.

Following the steep decline in the value of Iran's local currency last year, the government introduced import policies, such as banning the import of non-essential goods with domestic counterparts (Group IV of products) and allocating subsidized foreign currency at the rate of 42,000 rials per dollar to 25 categories of products (Group I) to cushion consumers against the increasing prices of products and costs of living.

Two other groups of imports were also defined: Group II that mostly includes raw materials, intermediate and capital goods, and Group III that consists of consumer goods.

Importers of products listed in Group II have to meet their forex requirements from the secondary FX market. Imports of products included in Group III may acquire foreign currency from exporters who are not required to offer their forex earnings on Nima.

Rice, wheat, poultry, eggs, fertilizers, seeds, raw sugar, oil, soybean, heavy-vehicle tires, publication paper, tea, pharmaceuticals, medical equipment and industrial machinery used for the production of essential goods were categorized as subsidized import items.