Subsidy reform has a positive impact on the agricultural market and the food industry

According to Fars News Agency, citing the public relations of the Federation of Food and Agricultural Industries; Mohsen Naghashi, the secretary of this federation, stated: the import of domestically produced goods has dealt a fatal blow to production; Especially when the goods were imported in the currency of 4200 Tomans, the producer could not compete at all.

He added that the prices of fuel, energy, laboratory activities, wages, taxes and insurance, which are related to production costs, will increase, but at the same time the prices of goods will not be corrected, which has damaged production.

The secretary of the Federation of Food and Agricultural Associations continued: “One of the important demands of the country’s food industry is the full implementation of the law on improving the business environment;” The law states that the organization must be polled for decisions.

He added: “In all classes, except for bakers, prices are set by the class itself, but in the food industry, pricing has been left to the government, which needs to be revised in this area as well.”

* Adjust the import of basic goods after removing the 4200 Toman currency

Amir Reza Sabeti Pai, President of the Federation of Food and Agricultural Associations, stated: The removal of the 4,200 Toman currency for the import of basic goods in the food industry will lead to its normal routine, but it has also created problems such as lack of working capital and reduced sales.

He added: “Although the increase in oil prices has increased 6 times, but there has been a 20% increase in the final price of ready-made food, however, the consumption and purchase of these products has decreased by 50% in recent days;” In some other food industries, such as sauces, the impact on the cost price is higher and has increased the final price of the product by 100 to 200 percent.

* Increase productivity after the liberalization of subsidized currency

Sabetifar stated: with the liberalization of subsidized currency for the import of basic goods, but in the country’s food industry, productivity will increase and the quality of products will increase; But some of the food industry may be shifting as they reduce their costs.

The president of the Federation of Food and Agricultural Associations continued: “We agree with the reform of subsidies for basic goods and transparency, but it seems that after the reform of subsidies, there is resistance to buying. However, the market is gradually getting used to these prices, although it is possible.” Compared to before, demand has decreased by about 20%.

* Subsidy reform of basic goods increased competition among food producers

He said: “In these new conditions, competition in the food industry market will increase the amount of competition and there should be no more orderly pricing in the food industry; If a brand has an unusual price increase, it will leave the market.

Sabeti continued: In the food industry market, there is a war between producers to reduce the cost and increase the quality (to maintain and develop the market) and they practically do not need to regulate the market; Even the analysis of the consumer and producer protection organization is higher than the producer price itself.

He added: “On the issue of including the price of the producer and distributor, but all the producers and distributors were against this plan, but it did not work.”

* Food export advantage still exists

Regarding the possibility of exporting foodstuffs after the reform of subsidies, Sabeti Pi said: “Despite the fact that the preferred currency of raw materials has been removed, but we still have an export advantage because in addition to cheap energy prices, wages in Iran compared to other countries.” It is less and it seems that wages are still paid based on 4200 currency.

Sabetifar stated: “On the other hand, in order not to hurt the producer, the government should not incur the financial burden of the incentive plan for the working community, and should compensate these costs in various ways.”

* Russia-Ukraine war continues Global food prices rise again

Hassan Gorji, a member of the board of directors of the Federation of Food Industry Organizations, said: “The Ukraine-Russia war has posed serious challenges to the world food security situation, and the price of basic goods in our country has been reformed in this direction.”

He added: “In this situation, the food industry must have working capital 3 to 4 times a month ago in order to be able to maintain employment and continue their production.”

Member of the Board of the Federation of Food and Agricultural Associations: If the Ukraine-Russia war continues for another year, the price of a hectare of wheat, which is $ 470 today, will reach $ 700.

He said that the effects of rising global commodity prices in the coming months will be transferred to the Iranian market: “These conditions have led India and China, with their large population, to increase their reserves and stop and limit their exports.” Have.

Small and medium-sized enterprises became vulnerable after the reform of basic commodity subsidies

Rasoul Ghamlaghi, a member of the board of directors of the Federation of Food and Agricultural Industries, stated: The Federation is a non-economic organization with the mission of guiding, supporting and guiding and includes the production chain to the consumption of various sectors of agriculture and food industries.

He added: “With the economic surgery plan that the government has on the agenda, this federation can help to implement this national plan.”

Ghamlaghi said: “After the reform of subsidies, the basic goods of small and medium enterprises are more vulnerable than their other competitors and need the help of the government.”

A member of the board of directors of the Federation of Food and Agricultural Associations continued: “Also, in these circumstances, the idea is difficult to implement and in addition to high risk, it requires initial capital and a lot of working capital.”

He added: “After the reform of subsidies for basic goods, enterprises need a lot of working capital that only large businesses can provide liquidity, and it is necessary to provide liquidity to small and medium enterprises in the food industry.”

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