112Currency Allocation ChallengesEconomicFinanceFlourWheat

Guiding Currency Debtors into Livestock Feed Imports

Mr. Farhad Bouzari, Grain Market Analyst

According to estimates, the government is likely to liberalize the wheat and flour industry next year. Given the high sensitivity of bread as a strategic commodity, this issue has been postponed to the second phase of reforms. In the first phase, gasoline subsidies were eliminated, and according to plans, part of the bread subsidy will also be reduced or eliminated next year.

According to the foreign exchange allocation table, at least the first five companies in this field are from the private sector, followed by companies such as State Livestock Affairs Logistics (SLAL), Government Trading Corporation of Iran (GTC), Jihad Esteghlal, and other government sectors. Therefore, the private sector does not face a major problem in terms of foreign exchange supply, but the government should be able to allocate foreign exchange to the private sector quickly with the mechanism it has created. According to the government’s announcement, the importer’s payment is to be made immediately after unloading and delivering the goods; whereas previously, the payment period was stated to be 40 days, three months, and even six months.

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