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| Iran exporting 2 million metric tons of wheat: minister |
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 Iran plans to export 2 million metric tons of wheat in the current Iranian calendar year after a cut in government subsidies reduced domestic consumption of the grain, Iran had no wheat exports in the previous year and forecasts an increase in output beyond the 15 million metric tons produced last year, Iran Economic Affairs and Finance Minister Shamseddin Hosseini said in Jeddah, Saudi Arabia, where he was attending the annual meeting of the Islamic Development Bank.
“Our agricultural sector will experience a better situation,” Hosseini said, adding that “We increased the price of wheat 30 times. Previously, lots of wheat and flour was destroyed and wasted in the country or was smuggled out”.
Iran is targeting economic growth of 6 percent in the Iranian year that began March 21, he said. Inflation will continue to accelerate until November, from 14.2 percent last month, though there are no immediate plans to further reduce the subsidies for consumers, he said. Non-oil exports will increase, he said.
"The economic sanctions from the West do cause Iran some disturbances, but this will not affect the country's advance," he said.
Asked about how sanctions imposed by the West had affected Iran's economic growth, Hosseini said that policies such as trimming subsidizes on flour and gasoline had helped the country overcome challenges.
By cutting back on subsidies for staples, Iran had reduced domestic demand and conjured up surpluses which could be exported.
Forecast is real
“The forecast is real, yet cautionary,” and includes the impact of oil on the economy, he said. He said crude prices are “definitely” going to move higher in 2012, staying above $100 a barrel. Non-oil exports will continue to grow, Hosseini said. Iran is the second-largest producer in the Organization of Petroleum Exporting Countries.
Iran will import goods totaling $65 billion this year, Hosseini said, without giving details or the previous year’s figure.
"Oil prices have been rising and we predict that they will stay at the $100 we asked permission from the government to have an oil price level ceiling in the budget which is $95," Shamseddin Hosseini said in an interview.
Even with a possible tumble in the price, Iran will be able to meet all its development needs at $81.5 per barrel, the figure used in current budget calculations, said Hosseini,
"Around 20 percent of the $81.5 will go into the country's development fund," he said, speaking on the sidelines of an industry event in Saudi Arabia's Red Sea port city of Jeddah.
(Source: agencies)
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| Last Updated on 01 July 2011 15:07 |