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Why is linking oil and grain a strategic mistake?

Mr. Amirhossein Afrashtehpour, Commercial Director of Afra Holding

Mr. Amirhossein Afrashtehpour, Commercial Director of Afra Holding

Most of the problems of industries dependent on basic commodities in recent years have been mistakenly linked to the oil industry. While grain activists know their specialized market and the nature of their activities is not directly related to oil sales policymaking.

Fortunately, with the elimination of preferential currency and the possibility of purchasing currency from the second hall, the activists in this field can obtain the currency they need from various exporters. The country has strong export-oriented industries such as polymers, steel, and petrochemicals that can be suppliers of currency. Any economic activist can offer their currency in the second hall and grain importers can buy it.

Therefore, linking the policy of oil sales with grain imports is a strategic mistake in policymaking, because one is a sanctioned product and the other is not, and the actors have different risks and mechanisms. The experience of the past years has shown that this link can have widespread negative consequences. Separating these two areas is a positive step towards structural reform.

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