Reasons Behind Export Ban Explained

EghtesadOnline: The government’s recent ban on exports of certain products, including tea, oilseeds, palm oil, sugar, milk powder, baby formula, butter and meat, is aimed at regulating the domestic market and protecting low-income households, the deputy head of Trade Promotion Organization of Iran said.

News ID: ۷۸۳۹۸۴

11 September 2018

“The government grants subsidized foreign currency for importing these essential goods and their raw materials, so Iranian consumers should enjoy this subsidy,” Mohammad Reza Modoudi was also quoted as saying by IRNA.

Noting that lifting the ban on exports would amount to a big, special privilege for the neighboring countries, the official said, people from neighboring countries travel to Iran and buy these subsidized essential goods and sell them beyond Iranian borders at open market rates.

“Therefore, this measure would prevent outbound smuggling and the outflow of foreign currency,” Financial Tribune quoted him as saying.

“Essential goods, pharmaceuticals and all items supplied at the government subsidized forex rate (42,000 rials per dollar) are subject to this ban.”