Continued Consequences of the Gas and Electricity Crisis; 'Greenhouse Vegetables' Will Become More Expensive

The head of the Greenhouse Vegetable Exporters Association announced that the price of gas for greenhouse owners has increased by 3.8 times since last week, while power outages have added to their problems. Mohammad Balaghi stated in an interview with the government news agency ILNA, 'Although the main fuel for greenhouse heaters is gas, keeping these heating devices on and ventilating the greenhouses depends on electricity.' He added that in the event of a power outage, heaters will stop working, forcing greenhouse owners to use emergency generators to supply electricity. However, the fuel for these generators, diesel, must be purchased at personal expense without any government support. This industry official warned that any disruption in the operation of generators could destroy greenhouse products in temperate and cold regions in less than two hours, especially if the power outage occurs during the cold hours of the night. Balaghi emphasized that the multiple increases in gas prices directly impact production costs and ultimately lead to higher prices for household vegetables and fruits. In another part of the conversation, the head of the Greenhouse Association referred to the agricultural policies of the past two decades, saying, 'In these years, efforts were made to direct agriculture from open spaces to greenhouses, and investors were encouraged to build greenhouses. However, the recent increase in gas prices makes greenhouse production unfeasible and could lead to investors leaving this sector.' Mohammad Balaghi stressed that the growth of the agricultural sector in Iran is entirely dependent on private sector investment, and rising production costs could disrupt this trend. This industry official pointed out the importance of greenhouse products from November to February, adding, 'These products play a significant role in regulating the vegetable market. For example, this November, the price of tomatoes reached 50,000 tomans per kilogram, and without greenhouse products in the market, this price could have risen to 100,000 tomans; the price of cucumbers could also have reached 60,000 tomans.' The head of the Greenhouse Association emphasized that about 80% of vegetables produced in the country's greenhouses are supplied to the domestic market, while the rest is exported to Gulf countries and Russia. He highlighted the necessity of gas consumption in greenhouses, stating, 'Greenhouse owners need gas to keep the greenhouse warm and produce vegetables in the cold season. However, the sudden and unprecedented increase in gas prices, which has occurred for the first time this year, has put immense pressure on this sector.' Mohammad Balaghi added that this price increase applies to all greenhouses in the country, and the government should have announced it months in advance. In this case, greenhouse owners would have had the opportunity to calculate whether production would be feasible for them at such costs and, if necessary, to refrain from planting. Similar reports from factories and production units indicate that the energy supply crisis, especially with the onset of winter, has disrupted the industrial and agricultural production cycle and is likely to lead to reduced consumer products and increased inflation. Energy problems, in addition to increased consumption, stem from mismanagement and declining energy reserves. Reports indicate that a lack of adequate planning in the energy sector, sanctions, drought, budget deficits, and even cryptocurrency mining have exacerbated the gas and electricity shortages.