World Grain - October 2019 - 20

COUNTRY FOCUS

KEY FACTS

FOCUS ON

IRAN

Country meeting goal of
self-sufficiency in wheat
by Chris Lyddon

Iran has one of the most diverse climates of any country in the
world, with a wide variation in farming conditions. It has been,
as a customer, a big player in the grain market, particularly with
UHJLRQDOSDUWQHUVDOWKRXJKLWLVQRZDWRUQHDUVHOIVX൶FLHQF\LQ
wheat. Iranians are among the biggest consumers of bread in the
world and the government manages the supply of wheat to ensure
adequate supplies.
According to the International Grains Council (IGC), Iran's total grains production in 2019-20 will come to 19 million tonnes,
up from 18.5 million the year before. Of the total, wheat accounts
for an unchanged 14.5 million tonnes. Barley production is forecast at 3.2 million tonnes in 2019-20, compared with 2.8 million
the year before.
Iran's total imports of grains in 2019-20 are forecast at 13.3
million tonnes, up from 12.5 million the previous year. Wheat
imports are expected to be just 300,000 tonnes, up from 200,000
the year before. Maize imports in 2019-20 are put at 9.8 million tonnes, up from 9.2 million the prior year. Barley imports
are forecast at 3.2 million tonnes in 2019-20. The
IGC expects Iran to produce an unchanged 2
million tonnes of rice in 2019-20. It also
will import 1.3 million tonnes of rice,
up from 1.2 million in 2018-19.
Iran is forecast to import 2.2
million tonnes of soybeans in
2019-20, the same level as in
the previous year. The IGC
forecast for soymeal imports
is also unchanged on the
year at 2 million tonnes.
The Iranian Ministry of
Agriculture said in July that
,UDQ ZRXOG EH VHOIVX൶FLHQW
in wheat for the fourth consecutive year. Esmael EsfandyariPour, an adviser to the minister
who is responsible for the administration of wheat planning, said that
20

Capital: Tehran
Population: 83,024,745 (July 2018 est.)
Religions: Muslim (official) 99.4% (Shia 90-95%,
Sunni 5-10%), other (includes Zoroastrian, Jewish,
and Christian) 0.3%, unspecified 0.4% (2011 est.).
Location: Middle East, bordering the Gulf of Oman,
the Persian Gulf, and the Caspian Sea, between Iraq
and Pakistan.
Government: Theocratic republic. Chief of state:
Supreme Leader Ali Hoseini-Khamenei (since June 4,
1989); head of government: President Hasan Fereidun Rohani (since Aug. 3, 2013).
Economy: Iran's economy is marked by statist policies, inefficiencies and reliance on oil and gas exports,
but Iran also possesses significant agricultural, industrial, and service sectors. The Iranian government
directly owns and operates hundreds of state-owned
enterprises and indirectly controls many companies
affiliated with the country's security forces. Distortions - including corruption, price controls, subsidies
and a banking system holding billions of dollars of
non-performing loans - weigh down the economy,
undermining the potential for private-sector-led
growth. Private sector activity includes small-scale
workshops, farming, some manufacturing, and services, in addition to medium-scale construction, cement
production, mining and metalworking. Significant
informal market activity flourishes and corruption is
widespread. The lifting of most nuclear-related sanctions under the Joint Comprehensive Plan of Action
(JCPOA) in January 2016 sparked a restoration of
Iran's oil production and revenue that drove rapid
GDP growth, but economic growth declined in 2017
as oil production plateaued. The economy continues
to suffer from low levels of investment and declines
in productivity since before the JCPOA, and from high
levels of unemployment, especially among women
and college-educated Iranian youth. In May 2017,
the re-election of President Hasan Ruhani generated
widespread public expectations that the economic
benefits of the JCPOA would expand and reach all
levels of society. Ruhani will need to implement structural reforms that strengthen the banking sector and
improve Iran's business climate to attract foreign investment and encourage the growth of the private
sector. Sanctions that are not related to Iran's nuclear
program remain in effect, and these - plus fears
over the possible re-imposition of nuclear-related
sanctions - will continue to deter foreign investors
from engaging with Iran.
GDP per capita: $20,100 (2017 est.); inflation: 9.6%
(2017 est.); unemployment: 11.8% (2017 est.) .
Currency: Iranian rials (IRR): 42,105 rials equal 1
U.S. dollar (Sept. 19, 2019.
Exports: $101.4 billion (2017 est.): petroleum 60%,
chemical and petrochemical products, fruits and nuts,
carpets, cement, ore.
Imports: $76.39 billion (2017 est.): industrial supplies, capital goods, foodstuffs and other consumer
goods, technical services.
Agriculture: 9.6% (2016 est.) of GDP and 16.3%
of the labor force.
Internet: Code: .ir; 36.07 million users.
Source: CIA World Factbook

October 2019 / World Grain / www.World-Grain.com

http://www.World-Grain.com

World Grain - October 2019

Table of Contents for the Digital Edition of World Grain - October 2019