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Iran bans wheat, rice imports; mulls other items

Tehran, September 12, 2010

Iran has banned imports of wheat, rice and several other food products in an effort to protect domestic producers, a trade official was quoted as saying on Sunday.

Deputy Trade Minister Babak Afghahi said the import of 20 food items had been banned and that Iran was considering restricting hundreds of other imports, according to Iranian business daily Donya-ye Eqtesad.

'The ban on food item imports will stay in effect until further notice, and in the mine and industry sector 1,300 non-essential industrial goods are being considered by the relevant agencies,' Afghahi said.

The import bans appear to be in response to Supreme Leader Ali Khamenei who earlier this month asked the government to exercise more prudence in the import sector to prevent damage to the economy.

Domestic producers have long complained that Iran's policy of keeping a strong currency has favoured imports over local products.

Afghahi said the Agricultural Ministry was considering raising import tariffs on 15 agricultural items but did not say which ones. Nor did he give details of what was on the list of 1,300 items drawn up by Iran's industries and mines and health ministries as possible targets of import bans. That list will be considered by the cabinet, Afghahi said.

Last week Agriculture Minister Sadeq Khalilian said Iran was self-sufficient in wheat, producing 15.14 million tonnes.

According to the latest figures on the website of the UN Food and Agriculture Organisation - for 2007 - Iran imported 153,257 tonnes of wheat and exported 113,152 tonnes.

The Iranian economy has been hit by a new round of international sanctions aimed at pressuring Tehran over its nuclear programme and Iranians are also preparing for price hikes in coming weeks when the government starts phasing out $100 billion subsidies on essentials such as food and fuel.

Wheat and rice are among the 'strategic' items on which the government exerts price controls. Iran's official inflation rate is 8.8 per cent and falling, but many Iranians and foreign economists believe it is much higher.-Reuters




Tags: economy | Iran | commerce | Trade | food imports |

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