Major Handicaps Face Iran's Agricultural Exports to Russia

EghtesadOnline: High customs duties, non-sustainability and the small scale of businesses, export companies and holdings are the three main handicaps facing Iran's agricultural exports to Russia, the head of Agriculture and Food Commission with Iran Chamber of Commerce, Industries, Mines and Agriculture said.

News ID: ۷۸۴۴۶۰

07 January 2019

“Since we are not a member of the Eurasian Union, the customs duties imposed on Iranian goods don’t allow them to compete price-wise with those of the rival countries,” Gholamali Faroghi was also quoted as saying by IRNA.

Another bottleneck, said the official, is that new directives are issued everyday in Iran, which ban, limit or permit exports, because of which Iranian traders cannot give commitments to provide sustainable exports to Russia.

“The Russian market demands long-term commitments on the part of the provider of goods and if they find their partner is not capable of supplying goods to them continually over long periods, they will turn to other partners who can,” Financial Tribune quoted him as saying.

"We do not have major producers and holdings that could supply agro products to the Russian market. Large holdings might incur losses during difficult economic times but they will survive nonetheless. Small-scale businesses can be wiped off the scene with a single blow."

According to Faroghi, Iran’s agricultural exports to Russia stand at $150-200 million per year.