World Grain - September 2015 - 26

COUNTRY FOCUS

Focus on Iran
Recent deal over its nuclear program
could help open new markets for
Iranian grain exporters
by Chris Lyddon

Azerbaijan

Iran is one of the world's biggest markets for grain, although
its imports are highly variable. The normalization of its relations
with the outside world, especially the E.U. and U.S., following
a deal on the scope of its nuclear program, is likely to open
new markets for grain exporters. The government, however, is
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The International Grains Council (IGC) put Iran's total 201516 grain production at 19.5 million tonnes, up from 18.8 million
the year before. The total includes 13.8 million tonnes of wheat,
up from 13 million tonnes. The barley crop is an unchanged 3.8
million tonnes.
The IGC now predicts Iranian 2015-16 imports at 11.6 million
tonnes, down from 14.6 million the year before. Wheat imports
are forecast at an unchanged 5.3 million tonnes, with maize
imports put at 5 million, down from 6.8 million the year before.
Iran is also forecast to import 1.3 million tonnes of barley, down
from 2.5 million in 2014-15.
The country is forecast to produce 1.7 million tonnes of rice
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previous year. Rice imports in 2015-16 are
also put at 1.7 million tonnes, down from 1.8
million in 2014-15. The IGC expects Iran to
import 1 million tonnes of soybeans in 2015I r a n
16, down from 1.5 million the year before,
along with imports of 2.5 million tonnes of
soybean meal, up from 2.4 million the prior
year.
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show the European Union (E.U.) as by far the
biggest supplier of wheat to the country, shipping 2.51
million tonnes, down from 3.373 million in the same
period of the year before. Next comes Russia, which
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year. The biggest supplier of maize to Iran is Brazil, which shipped
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Turkmenistan

Afghanistan

Iraq

Pakist

Saudi Arabia

Bahrain

Qatar

United Arab
Emirates

Oman

Key Facts
Capital: Tehran
Population: 81,824,270 (July 2015 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 Ayatollah Ali Hoseini Khamenei (since June
4, 1989); head of government: President Hasan Fereidun
Ruhani (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 inflation, 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. Significant informal market
activity flourishes and corruption is widespread. Fiscal
and monetary constraints, following the expansion of
international sanctions in 2012 on Iran's Central Bank
and oil exports, significantly reduced Iran's oil revenue,
forced government spending cuts, and sparked a sharp
currency depreciation. Iran's economy contracted for the
first time in two decades during both 2012 and 2013,
and grew only slightly in 2014. Iran continues to suffer
from high unemployment and underemployment. Lack
of job opportunities has prompted many educated Iranian youth to seek employment overseas, resulting in a
significant "brain drain." In June 2013, the election of
President Hasan Ruhani generated widespread public
expectations of economic improvement and greater international engagement. In connection with ongoing international negotiations over Iran's nuclear program the
limited sanctions relief for Iran provided under the Joint
Plan of Action of November 2013, helped to forestall the
decline in the economy in 2014.
GDP per capita: $17,100 (2014 est.); inflation: 15.8%
(2014 est.); unemployment: 11.2% (2014 est.).
Currency: Iranian rials (IRR): 29,859 rials equal 1 U.S.
dollar (Aug. 20, 2015).
Exports: $95.71 billion (2014 est.): petroleum 80%,
chemical and petrochemical products, fruits and nuts,
carpets, cement, ore.
Imports: $61.25 billion (2014 est.): Industrial supplies,
capital goods, foodstuffs and other consumer goods,
technical services.
Major crops/agricultural products: Wheat, rice,
other grains, sugar beets, sugarcane, fruits, nuts, cotton;
dairy products, wool; caviar.
Agriculture: 9.1% of GDP and 16.3% of the labor
force.
Internet: Code: .ir; 22.9 million users.
Source: CIA World Factbook

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