94GrainsPrivate Sector InterviewSpecial InterviewThechnology

Alarm of dumping in the market of livestock inputs

Mr. Farhad Bouzari, Grain Market Analyst

He said: An interesting point that has attracted the attention of Ardkar Sanat Company with a history of 30 years of activity in the field of flour industry machinery in every IDMA exhibition is the emergence of new Turkish machine manufacturers and brands in this industry, which, of course, are mostly established with the aim of exporting machines to African and Asian countries, and their main market is not Turkey, because about 60 flour industry machinery manufacturing companies operate in Turkey.

Currency issues are one of the important challenges in grain imports to Iran. Because when a product enters the country, a warehouse bill must be given for it, then it must be placed in the queue for currency allocation, which process takes about two months. On the other hand, money transfer is the second problem for merchants; grain buyers have to transfer the seller’s money through Dubai or Turkey, which usually costs one to three percent for Iranian merchants.

Regardless of the problems in the grain import sector, in the grain distribution sector in the market system, some structural reforms seem necessary so that we can realize the amount of inputs needed in the country. Because there is no correct statistics about the amount of demand and the corresponding volume for imports; in such a way that we are currently witnessing the annual sale of more than 2 million tons of inputs outside the market system.

In this situation, we are facing dumping (market breaking) in sales, which must be dealt with seriously. Because these price reductions remove the remaining sellers from the field of competition. On the other hand, the pricing should be fair and conventional bank buying and selling devices such as LC, bank guarantee, etc. should be set up so that buying and selling can be done properly. Also, we need to have stable policies and good laws in the import, distribution and sales sector to secure grain trade.

 

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