Iran’s diverse climate, topography, and altitude give rise to a wide variety of fruits, ranging from tropical dates to those found in temperate and cold regions. In fact, Iran is one of the world’s top ten producers of 15 horticultural products. Despite producing four percent of the world’s agricultural products, Iran’s autocratic rule has led to the industry facing collapse. As a result, the Iranian people have one of the lowest rates of fruit consumption in the world.
According to the report of the state-run Mardom Salary newspaper on April 24, “Iran is a leading producer of several high-quality agricultural products. The country holds the first place in the world in producing pistachio, barberry, caviar, saffron, stone fruits, and various types of berries. Additionally, Iran ranks second in the world in apricot production and third in cherry, melon, apple, and fig production. These impressive rankings are a testament to the country’s rich agricultural heritage and the hard work of its farmers.”
According to the state-run Bazar website, as of July 25, 2023, Iran produces over 4.3 million tons of apples annually, with approximately one million tons of this fruit exported to other countries. These figures highlight the significant role that Iran plays in the global apple market and the country’s potential for further growth in the agricultural sector. And according to the state-run Taadol website on March 3, “Last year, apples were one of the most currency-earning agricultural products.”
The price of exported apples from Iran has been relatively stable in recent years. For example, the price of exported apples was 34 cents a kilo last year and 28 cents in 2021. The Iranian regime has been exporting apples at similar prices in the past years. These figures demonstrate that the Iranian apple industry has maintained competitive pricing in the global market despite periodic fluctuations.
On May 22, the wholesale price of good quality apples, which are even lower in quality than those exported, was 325,000 Rials or 64 cents in the Iranian fruit market. However, in fruit shops, the same apple can cost between 550,000 and 650,000 Rials, which is equivalent to between one and a half to two dollars. Even considering the lower price of 550,000 Rials as a base, Iranian citizens must pay three times the export price for apples. These figures highlight the significant disparity between the prices of apples in Iran and other countries, making it difficult for ordinary Iranians to access affordable and nutritious fruit.
But how much do officials buy the same apple from the farmer?
“Field investigations have revealed that the price of buying apples from farmers in Iran is 5,000 Rials per kilo, which becomes 30 times more expensive when it reaches the customer. In the fruit and vegetable markets, the price can reach at least 150,000 Rials per kilo. These findings demonstrate the significant markup that occurs as apples move through the distribution chain in Iran, resulting in higher prices for consumers,” the state-run media Khabar Online He wrote on October 12, 2021
The high prices of fruit in Iran can be attributed to brokers and middlemen who are affiliated with the government-linked mafia, and they control prices. These middlemen often take advantage of farmers and cause them to suffer significant losses, leading to the destruction of their livelihoods. In some cases, farmers are forced to throw away their crops due to inadequate pricing and being cut off from the supply chain, further exacerbating their plight. The involvement of these intermediaries highlights the need for greater transparency and fair market practices in the Iranian fruit industry.
In many countries, governments purchase products from farmers at guaranteed prices or create processing factories for fruits to prevent spoilage. However, the clerical regime focuses solely on obtaining dollars. The regime sells the products, in this case, apple, at the world market rate and exports them to generate the necessary foreign currency.
Unfortunately, Iranian farmers cannot buy agricultural inputs at exorbitant prices, leading to significant financial burdens. The Iranian government’s lack of support for farmers highlights the need for greater investment in the agricultural sector and the creation of policies prioritizing the well-being of farmers and the country’s food security.
During the parliament’s public session, MP Javad Nikbin said: “The Minister of Agriculture either does not live in Iran, does not deal with farmers, or is not interested in agriculture. The cost of agriculture has increased significantly due to exorbitant prices for fertilizers, which account for 50 to 80 percent of the total expenses. In the past, these fertilizers were 300percent to 400 percent more expensive than their current prices. These high prices place a significant financial burden on Iranian farmers and hinder the growth and development of the agricultural sector. The government’s lack of attention to the needs of farmers highlights the need for greater investment and support in the industry.”
As reported by the state-run Khabar Fouri website on April 30, the Iranian regime earned $215.9 million from the export of apples last year. This income was generated from the sale of 750 thousand to one million tons of apples. These figures demonstrate the significant role that apple exports play in the Iranian economy and the potential for further growth in the agricultural sector.
Apple production is a water-intensive process, with each kilogram of ripe apples requiring approximately 700 liters of water. This means that producing 750 thousand tons of apples requires at least 500 million cubic meters of water. If freshwater is priced at one dollar per cubic meter, the value of the water alone is $500 million.
The Iranian regime virtually and secretly uses this water, equivalent to $500 million, to produce and export apples, generating an income of $215 million. Unfortunately, the farmers who grow these apples receive a minimal share of the profits, if any at all. The Iranian government’s lack of support for farmers highlights the need for greater transparency and fair market practices in the agricultural sector.
