Export Barriers Hinder Date Production: A Problem That Keeps Recurring

Kerman – While foreign currency earnings and export-oriented production are among the country's serious needs, export restrictions have become an obstacle for date growers in eastern Kerman.

Ambassador Arjan - Provinces Group: The date industry of Kerman province, as one of the main hubs of production and export of this product in the country, is dealing with a series of structural and policy challenges these days, the result of which is the storage of a significant part of last year's product and serious concern for the sale of the new product.

Export tariffs and customs procedures have become a new problem for farmers these days, which, according to farmers and exporters, not only do not encourage exports, but have become a serious obstacle in this direction.

the same tariffs; Ignoring the difference in quality

One of the main complaints of farmers is the application of the same tariffs for date varieties that are completely different in terms of quality, and this policy has caused exporters to lose their motivation to supply high-quality and popular products such as Mozafati and Kloteh to the world markets.

While these varieties have loyal customers in the countries of the Persian Gulf, Central Asia and Europe, the same tariff as the high grade dates has practically weakened their competitiveness in foreign markets.

The result of this approach is that some exporters have turned to unconventional methods to avoid currency obligations, which has created a new challenge in the path of legal trade.

Unrealistic pricing and deep distance from the market

Another problem is the unrealistic and unprofessional pricing of the product in the customs authorities and even in the domestic market.

The rates determined for each ton of dates in the customs valuation offices have a significant gap with the market realities and production costs, and this gap has faced exporters with serious difficulties in meeting their foreign exchange obligations.

On the other hand, in domestic transactions, the gap between the announced price and the amount received by farmers is very significant; In some cases, the price announced for each kilogram of dates differs by more than 100 thousand tomans from the price at which the farmer actually sells his product.

This price gap, caused by product storage and lack of customers, has greatly reduced the bargaining power of palm growers.

In a conversation with Mehr's reporter, Regan's temporary imam says: Unfortunately, the customers of farmers' dates are dealers and they sell the product to consumers in the domestic consumption markets at several times the price they buy from the farmer.

Hojjat-ul-Islam Majid Razmgeh, referring to the hard work of farmers in the heat of east Kerman, adds: In these harsh conditions of heat and drought, farmers work day and night, and dealers pocket the profits of their efforts.

He states: The field of production and efforts of farmers should be provided, and with more supervision, the field of date export and sale of dates in the domestic market should be provided for producers.

Sudden prohibitions and irreparable damages

The sudden and partial decisions to ban the export of dates, especially on the eve of the holy month of Ramadan, have dealt a heavy blow to the body of this industry.

These bans, which are adopted with the aim of ensuring internal food security, have in practice caused a significant amount of the previous year's product to be stored in cold storage, especially in the southern and eastern regions of the province; Meanwhile, most of these products are cultivars that do not have much domestic consumption and are mainly produced for export.

Infrastructural barriers and administrative procedures

In addition to tariff issues, administrative procedures and restrictions caused by commercial cards have also become the reason.

Limiting the export ceiling for commercial cards and blocking some of them have forced exporters to use expensive methods such as rental cards, which imposes additional costs on exports.

On the other hand, sea transportation costs have multiplied due to the lack of containers and regional restrictions, and land routes are also facing border congestion and long queues of trucks.

In a conversation with Mehr reporter, the vice-chairman of the National Date Association of Iran, criticizing the unrealistic and unprofessional valuation of customs tariffs, announced that the determination of the rate of 2,310 dollars for each ton of dates and extra water for the past year has turned the path of "resolving the foreign exchange obligation" into a risky and expensive field for businessmen.

Hamed Badrabadi added: Despite holding numerous meetings and correspondences with the Deputy Minister of Commerce of the Ministry of Agricultural Jihad, Tropical Fruits Office and Customs Valuation Office, this unreasonable rate is still standing and is opposed by the activists of this industry.

He also criticizes the issuing of a sudden order banning exports under the pretext of ensuring food security and continues: This sudden decision led to the storage of a huge amount of the product in cold storage and these dates are still stored in cold storage.

The head of the Kerman Chamber office in the east of Kerman province, referring to the transportation costs, says: the transportation costs have created a double burden on the shoulders of farmers.

Badrabadi, emphasizing the need to change the direction of decision-making in the date industry, called for the real and effective participation of the private sector in this process.

He points out: All decisions related to this strategic product should be made with the consultation and expert opinion of specialized associations, especially the Date Association, whose members are from the heart of production and trade and are aware of the pulse of the market, and only in this way can the repetition of sudden and traumatic decisions that affect the job security of thousands of households be prevented.

The same tariff is cruel to high-quality dates

One of the date exporters in Bam city, who has been active in this field for more than two decades, told Mehr reporter: "The most important current problem is applying the same tariffs for different date varieties."

According to Mohammad Askari, when the same tariff is applied to Mozafati and Kloteh dates, which are considered to be the best varieties of the country, which is set for low-quality dates, the exporter no longer has an incentive to supply first-class products to the world markets.

Pointing out that last year a significant part of the high-quality product of the region remained in cold storage due to these policies, this exporter called for an immediate reform of the tariff system based on the quality of the product and added: Until this problem is solved, the export of dates from East Kerman will not be able to find its real place in the world markets.

Another exporter from Fahraj city, who has been working in the field of exporting dates to Central Asian countries and Russia for many years, criticizing the sudden and temporary decisions to ban exports, said in a conversation with Mehr: These decisions have affected the date industry.

According to him, just when the shipments of dates were ready for export and the contracts with foreign buyers were finalized, the export ban was announced, which caused the shipments to remain in the customs and some of them became unusable due to the delay.

Unrealistic pricing and currency barriers

Majid Hadizadeh, a date producer from Narmashir city, referring to the problems caused by unrealistic pricing in customs offices, says: The rates that are determined for each ton of dates in the valuation offices are significantly different from the actual production costs and market prices.

According to him, when the exporter is required to return the currency obtained from the export at an unrealistic rate, his profit margin is practically destroyed and in many cases, the export turns into a loss.

This exporter also continues by referring to the limitations of commercial cards: the low export ceiling and the blocking of some cards have forced him to use rented cards, which imposes a double cost on each kilogram of export.

Stating that transportation costs have also increased due to the lack of containers, he said: the sum of these factors has increased the price of Iranian dates in the target markets.

The same tariffs, unrealistic pricing, sudden bans and currency barriers are a set of factors that have gone hand in hand and have hindered the export of dates from East Kerman.