Edible Oil Output Reaches 1.061 Million Tons

The Secretary of the Vegetable Oil Industries Guild said there is no shortage in supplying or producing vegetable oil in the country, and that oil production in the first half of this year exceeded 1.061 million tons.

According to the report of Ambassador of Arjan, Alireza Sharifi, Secretary of the Trade Union of Oil Industries, referring to the state of production and supply of oil in the country, stated: According to statistics, the production of vegetable oil in the first 6 months of this year has decreased by about 8% compared to the same period last year. So that during this period, 1 million 61 thousand 408 tons of oil were produced, while this figure was 1 million 158 thousand 862 tons in the first half of last year.

He added: The average production of oil in the first half of this year was about 177 thousand tons per month. Despite this, production was expected to decline further; Because after the removal of the preferred currency and the sudden increase in prices, consumers turned to using the previous stocks, and storage gave way to the consumption of existing stocks. On the other hand, oil smuggling was also stopped or greatly reduced.

Referring to the changes in oil supply and demand in recent months, Sharifi said: the difference in oil production and distribution in the five months of this year compared to the same period last year was about 13%. Due to the increase in the gap between the free exchange rate and the exchange rate in the exchange, it seems that along with the increase in demand and production in September, the smuggling of this product has resumed; However, we do not have accurate statistics in this field.

Oil production is subject to market demand

The Secretary of the Trade Union of Vegetable Oil Industry, emphasizing that oil production depends on the level of demand, said: the inventory of raw materials is at an acceptable level and the changes in production in recent months were not due to the lack of raw materials. In other words, in case of increased demand, it was possible to increase production in the first half of the year, and raw materials were not the limiting factor of production.

He said about the oil price changes after the removal of the preferred currency: based on the surveys, the price of oil for consumers has reached 3.8 times the level before the removal of the preferred currency.

Sharifi continued: At the time of removing the preferred currency, the dollar rate increased from 28,500 tomans to 112,500 tomans, while the current exchange rate has reached more than 180,000 tomans. Despite the increase of about 70 thousand tomans in the exchange rate in this comparison, in recent months there has been no new increase in the price of oil due to the special conditions of the country.

Assessing the availability of oil in the country favorably, he stated: suitable supply conditions have been the main factor in the calm of the oil market.

Expected to produce more than 2 million tons of oil by the end of the year

Referring to the production estimates at the beginning of the year, the secretary of the vegetable oil industry association said: At the beginning of this year, oil production was expected to decrease from 2,200,000 tons last year to 1,800,000 tons, but considering the production of more than 1 million tons in the first half of the year, this year's production is expected to exceed 2 million tons.

He added: Despite the multifold increase in the exchange rate, the amount of production decline has been lower than the initial forecasts. Of course, if the gap between the free exchange rate and the exchange rate continues to increase, there is a possibility of increasing the motivation for smuggling.

Referring to the symmetry of Ramadan and Nowruz days in the second half of the year, Sharifi stated: It is not expected that oil production in the second half of the year will be less than the first half. Unless we face a problem in providing raw materials.

The naval blockade did not cause a disruption in the supply and production of oil

Regarding the supply of crude oil needed by the country in the conditions of maritime restrictions, he said: the maritime blockade has not caused any serious disruption in the supply and production of oil so far; Because most of the crude oil required by the country is imported from the northern and western borders, and we have not had any serious problems in importing part of this product from Imam Khomeini port.

Pointing to the production of crude oil from domestic and imported oilseeds, Sharifi said: Every year, about 500,000 tons of crude oil are produced from the processing of domestic and imported oilseeds, most of which is dependent on imported seeds.

Sharifi: Imported oils are not concerned about transgenics

The secretary of the trade association of vegetable oil industry, in response to the concern of some households about the health of imported oils and their transgenic nature, said: Households should not worry about the consumption of vegetable oil. Imported oil and oilseeds can be cleared only after going through the legal procedures and receiving the necessary permits, and the products approved in terms of safety, according to the criteria and evaluations of the competent authorities, enter the country.

Explaining the import situation of crude oil, he added: About 800,000 to 900,000 tons of crude sunflower oil are consumed in the country every year, of which 99% is imported and 1% domestically produced. According to him, these oils are non-genetically modified.

Sharifi continued: About 500,000 tons of palm oil is imported into the country every year, which, according to him, is non-genetically modified. Also, the consumption of rapeseed oil is about 200,000 tons per year, most of which is provided by domestic production and is non-genetically modified.

He stated that a part of soybean oil, especially the oil produced from imported seeds or the import of crude soybean oil, has a transgenic origin, and emphasized: Transgenic does not mean that the product is harmful, and import and clearance licenses should be issued based on safety evaluations and regulations of the Ministry of Health and other responsible authorities.

Foreign currency claims of more than 4 billion euros; The main challenge of importers of basic goods

Referring to the most important challenge of importers of essential goods, especially crude oil importers, the Secretary of the Vegetable Oil Industry Association said: Accumulation of outstanding foreign currency claims from the government is the most important concern of the activists of this sector.

He added: Currently, more than 4 billion euros of foreign currency claims of importers of basic goods have not been paid from the government, of which about a quarter is related to the undecided claims of the oil sector since February 1403 with an exchange rate of 28 thousand 500 tomans. Another part is dedicated to previous periods and previous exchange rates.

Sharifi continued: At the same time as importers' capital is blocked, these economic activists owe about 800 million euros for bank facilities and are still required to pay interest and fines to domestic banks. This situation puts additional pressure on the country's basic goods supply cycle.

Referring to the consequences of the continuation of this situation, he stated: the minimum action of the government and the banking system should be to stop the pressure caused by bank debts on the importers of basic goods by freezing the debts and stopping the calculation of interest and fines during the period of determining the assignment of foreign exchange claims.

According to the Secretary of the Vegetable Oil Industry Association, the delay in determining the assignment of these demands can lead to weakening the credibility of the government with the private sector and reducing the trust of foreign sellers in Iranian businessmen. An issue that threatens the supply of basic goods and food security of the country in the long run.

In the end, Sharifi stressed: In order to restore the confidence of economic activists, the government should freeze the foreign currency debt of importers of basic goods to the banking system and pay 50% of the demands of importers who do not have foreign currency debt to banks.