Free of charge

Dates: little confidence in Iran’s economic policy

April 27, 2020 at 1:22 PM , Der AUDITOR
Play report as audio

TEHRAN. Ramadan normally prompts a surge in demand and drives up prices. This year prices, however, range 40-50% lower than last year as Meydad Takallouzadeh from the National Association of Iranian Dates points out. Problem are the Covid-19 related export restrictions, which have a devastating impact on the market and the economy.

Concerns over accumulated debt

As the Iranian Dried Fruit Exporters’ Union remarks the export restrictions have caused severe financial and moral damage to the industry. Many factories have, in addition, been forced to close, but still need to pay salaries, insurance fees on other costs. This poses unknown financial problems as the full extent of the crisis will only transpire of the next few months. Market players are anxiously waiting for political support. Help should be forthcoming from the government as legislation is expected to permit delays and cancellations in business payments to banks and the government. Date producers state that the economic pressure could be reduced if mandatory payments can be postponed. Another help would be the payment of bank facilities, including fines and liabilities.

The government is expected to make provisions for such a scheme and to provide timeframes for mandatory payments such as insurances and taxes. Problem, however, is that such economic measures have severe drawbacks. As these provisions were adopted in times of drought, many manufacturing and commercial companies became highly indebted. The economy is, in fact, still struggling with the large amount of accumulated debt. Although activists are demanding that companies should be exempted from obligatory payments, that staff salaries should be axed while businesses are closed and that bank profits should be eliminated, it is highly unlikely that the government will adopt such measures.

Nominal rise in prices

Although Ramadan, which started on 25 April, has driven up international and domestic demand for dates, prices have only risen by around 4.2-4.6% over the last two weeks. The general price level is much lower than is normal for Ramadan. Stocks in the warehouses are high as exports are largely restricted. The nominal rise in prices is also driven by exchange rate fluctuations as the Iranian rial has gained in value.

 

Mazafati dates, Iran

Grade

EUR/kg

Grade A

1.14

Grade B

0.98

Premium Grade

1.23

FOB Iran

 

View more information

price chart, Mazafati dates, dried, grade A, Iran
price chart, Mazafati dates, dried, grade B, Iran
more price charts

View related articles

Go to the News Overview
Dried Fruit
Jul 10, 2025
MADISON/QUÉBEC. May and June brought abundant rainfall and little sunshine to cranberry-growing regions. Nevertheless, yield prospects are moderate. EU countries have increased their imports by 11.5% this year.
Dried Fruit
Jul 9, 2025
SANTIAGO/SACRAMENTO. EU countries have significantly reduced their prune imports compared to last year. In California, the fruit are developing on the trees and Chilean farmers are busy with winter maintenance on their plantations.
Nuts
Jul 9, 2025
MANILA. Although the coconut market continues to face considerable hurdles, prices for desiccated coconuts and coconut oil are proving surprisingly resilient. The Philippine government wants to support the industry.
Dried Fruit
Jul 8, 2025
AYDIN. Market players in the Turkish province of Aydin are satisfied with how the pollination period has progressed so far. The weather in the coming months will show whether the positive outlook can be fulfilled.