6 obstacles of fruit exporters were raised in the letter to the president

According to the economic reporter of Fars News Agency, the National Union of Agricultural Products of Iran has written to the president asking to solve the problems of exporters of fruits and agricultural products. Production and export have performed especially during the cruel sanctions period, which definitely deserves a reward for this national and Islamic duty.

In the following, it is stated: Taking decisions of the people in different relevant organizations repeatedly, especially during the period of trade restrictions and unfair sanctions, not only did not help the development of production and exports, but also caused a decrease in production and stagnation of exports.

The problems faced by exporters of fruits, vegetables, flowers and plants, especially in relation to the settlement of foreign exchange obligations, are summarized as follows. Please order to take appropriate action to solve the announced problems that are the common pain of the country’s producers and exporters:

In this letter, it is stated: Fruit and vegetable exporters to Persian Gulf countries during the years 2017, 2018, 2019 have not acquired and stored any foreign currency to be able to return it to the monetary system of the country due to the following reasons. Unfortunately, we have seen that by issuing numerous circulars and repeatedly extending the return deadline, only the condition is impossible, and it has caused concern, anxiety, lack of motivation among exporters and deep-rooted producers, and closure of exports.

a. The continuous export of fruits and vegetables has a high degree of job creation, but in terms of goods, it is bulky, perishable and with a very low profit margin. Therefore, exporters cannot limit themselves to the export of one shipment and keep their currency for a few months, like the export of other goods and equipment. The high circulation of goods and the perishability of goods do not allow fruit exporters to import goods in exchange for exports or to transfer their currency to importers.

B- Due to the oppressive sanctions in the global banking system, no order registration can be done in the target markets, and Persian Gulf exporters export their perishable goods only as a trust, and fruit and vegetable merchants sell goods after selling the goods and deducting the costs. The transportation and commission transfer the balance of the money to the local exchanges and the Riyal equivalent of the relevant funds is deposited into the exporters’ account.

C- During the period of illegal sanctions, despite the respectable government’s insistence on the return of foreign currency from exports, none of the Iranian banks in the Persian Gulf have taken any action to collect foreign currency from exporters, and continued to provide currency from exports to local exchanges. Is it the responsibility of the exporters to create a mechanism for exporting and returning money through the banking system?

D- No insurance company insures and guarantees perishable fruit and vegetable products, and exporters carry out export affairs with great risk and fear.

e. The export of fruits and vegetables is maybe less than 5% of the country’s agricultural production and the waste in this sector is about 35%. Therefore, supporting production and export in this sector can play an important role in reducing waste and developing the country’s exports, and no organization or institution has been responsible for monitoring the cost of road and especially sea transportation of fruits and vegetables, and the rates of ships and vessels in The Persian Gulf area, unfortunately, has sometimes faced unreasonable price increases.

G- Considering that the genuine producers and exporters have always accompanied the respected government in keeping with the promise and export products that are surplus to the country’s consumption; Unfortunately, in the past few months, virtual water fees have been collected from exporters, which has caused a double problem. Why is this point not paid attention to? The main culprit of the inappropriate cultivation pattern and production of water-bearing crops is the Ministry of Jihad Agriculture, not the exporters!!!

Considering the aforementioned problems, as mentioned, in the conditions of complete blocking of international currency remittance networks, the entry of foreign currency by fruit and vegetable exporters is completely impossible, and any insistence and insistence of the government will bring no result other than the closure of fruit and vegetable exports. If the honorable government is determined to introduce currency into the country, it is necessary to consider the following suggestions and items:

1- Due to the commercial and banking sanctions, the commercial departments of the embassies should present and make a decision to attract currency for fruit and vegetable exporters in the export target markets.

2- Iranian banks, which fortunately are not few in the Persian Gulf area, can receive the foreign currency from exporters’ exports in cash with checks in export target markets and in return, deposit rials in the exporters’ account in Iran.

3- Small importation without transferring currency during the embargo period can lead and return part of stray currencies to the country.

Explaining that recently, the Tax Affairs Organization has emphasized the removal of tax exemption for exporters, in case of failure to return the currency on time and resolve the foreign exchange obligations, if this issue is implemented. Certainly, the exporters of this sector will not have an incentive to continue exporting operations.

In conclusion, he declares that the country’s food security depends on special support from producers and exporters of agricultural products and the support of His Highness.

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