Fuel and Input Rationing Has Destroyed Agriculture in Iran

Fuel and input rationing is the main issue facing farmers these days, and the worsening conditions alongside the lack of a clear outlook in this sector have raised many concerns. In this regard, Mohammad Reza Torabi Mousavi, Vice President of the Agricultural Commission of the Iran Chamber of Commerce, warned in a report published by 'Hajarat News' on Thursday, December 27, that 'the continuous reduction of these quotas along with the elimination of currency allocation for seeds has plunged agricultural production into crisis.' According to 'Tejarat News,' 'issues such as diesel fuel rationing for agricultural machinery, insufficient currency allocation for importing seeds and inputs, and the reduction of these quotas have had a significant negative impact on domestic production and the competitiveness of farmers in domestic and foreign markets.' The report emphasizes that the increase in production costs due to these issues has made competition in the market more difficult, leading to reduced production and increased prices. Mohammad Reza Torabi Mousavi also told 'Tejarat News' that 'diesel quotas in this sector are gradually decreasing to the point that there is no law governing it.' He stated that an expert from the Agricultural Engineering Organization determines the quotas based on specific formulas, but the oil company reduces the quotas. This private sector activist noted that the lack of sufficient currency and its allocation at the time of need are other problems in this sector that have disrupted the supply chain for seeds and other necessary inputs for the agricultural industry. Ataollah Ashrafi Isfahani, head of the Agricultural Commission of the Tehran Chamber of Commerce, also protested against power outages in the agricultural industry on December 19, stating, 'Agriculture, despite dealing with food security and involving the breeding of livestock, poultry, and plants, is neglected, while power outages in this industry mean the loss of capital and do not only halt production.' Mr. Ashrafi Isfahani also mentioned that the diesel quota provided by the government for supplying fuel to generators in the agricultural sector is insufficient, and now producers sometimes have to pay up to 20,000 tomans for each liter of diesel. With the emergence of a fuel supply crisis in Iran, the agricultural industry, like other sectors, is facing difficulties in obtaining diesel, and acquiring this fuel at market prices has also increased production costs and the final prices of products for consumers. Alongside this issue, power outages in agricultural units and greenhouse gas have inflicted irreparable damage on their production, which will ultimately manifest as reduced supply of various products and increased prices in the market. According to several experts, alongside the aforementioned problems, the lack of currency has also endangered the foundation of production in the agricultural sector and left the outlook for food security unclear.