The role of government macro policies in the trade of livestock inputs

He stated regarding the government’s wrong policies and their review: Macro government policies are effective in the oilseeds market, and its negative effects also involve the consumer. In the sense that the government’s wrong policy can cause an increase in the finished price and this will ultimately harm the consumer.

Currently, there are two major policies in Iran that have created challenges for importers, producers and consumers. The first case is the issue of quotas for registration of orders. In this situation, when the importer or producer does not know about the next season’s quota plan, he cannot plan and buy in advance. Therefore, there will be no competitive purchase. Also, if he is aware of his quota in the current season, he has lost his bargaining power because in some cases, a producer’s quota may be less than the size of a ship and he has to import with smaller ships. Hence, this issue increases its finished price and ultimately the consumer suffers.

Mr. Afrashtehpour further pointed to the second big policy mistake of the government and said: The second wrong policy of the government in the oil industry, which has a significant impact on the supply and the final price, is the guaranteed purchase of domestic seeds. Although we agree 100% that the farmer should be supported and assured purchase can help the farmers a lot, I think that the importer should collect and buy the seeds is a wrong policy and not his duty. Perhaps it is better to create liquidity for guaranteed purchase in another way and set a tariff for the import of oilseeds and for government institutions to make guaranteed purchases, which of course will lead to an increase in the final price and loss to the consumer. Therefore, there should be a review regarding the guaranteed purchase of oilseeds in the country. This wrong policy creates restrictions and interruptions in the clearance process for the merchant.