Since the beginning of the harvest season (mid-July), the government has purchased 4.8 million tons of wheat from farmers.
Announcing this, Mohsen Daraei, the spokesman of Bank Sepah’s Guaranteed Wheat Purchase Plan, put the value of purchased wheat at 38 trillion rials, of which 36 trillion rials have been paid to the farmers, IRNA reported.
Daraei hoped the remaining 2 trillion rials will be paid in the next two days.
“As we are getting close to the end of the harvest season, wheat harvest has declined in some provinces. However, guaranteed wheat purchase is expected to exceed 5 million tons in the current Iranian year (started March 21),” he said.
Daraei said figures show the private sector has purchased over 3 million tons of wheat.
“Since we are at the beginning of the wheat cultivation season for the next year, officials in tropical provinces should prepare the grounds in this respect,” he said.
He put the next year’s wheat price at 10,500 rials-10,800 rials, which is 2,500 rials higher than that of last year.
Daraei noted that if we have favorable climatic conditions next year, wheat production will grow and imports will decline.
Last year, the government purchased 2.46 million tons of wheat.
Esmaeil Esfandiarpour, manager of the Wheat Plan of Agricultural Jihad Ministry, said this year, supporting wheat growers and increasing production will be prioritized.
Referring to the Cabinet’s ratification regarding wheat price before the start of the cultivation season, he said this will play a significant role in outlining plans for wheat production.
The official also said this year, the ministry plans to support the production of other crops.
On the Wheat Plan, he said, “We have not begun the plan’s implementation yet, but will gradually do it.”
Esfandiarpour said that by implementing the plan, Iran aims to achieve self-sufficiency in wheat production.
“Certainly, by determining a reasonable price for wheat purchase, the government can boost the crop’s productivity,” he said.
Iran Building 8 Mini Refineries
Iran has made plans for the construction of eight small- and medium-sized gas condensate refineries in Asalouyeh, which houses the giant offshore South Pars Gas Field along the Persian Gulf coastline.
The refineries will help convert nearly 500,000 b/d of gas condensate to products of high economic value.
Hojjatollah Fereidouni, director of economic development and investment attraction in Pars Special Energy Economic Zone, also told Shana news agency that five financiers have been authorized by the Oil Ministry’s Directorate of Consolidated Planning.
Three more potential investors are in the process of getting the permit.
Fereidouni said the refineries will have a capacity of 10,000 to 150,000 b/d.
“With the construction of these eight refineries, byproducts such as diesel, gasoline, naphtha and tar will be produced in different grades of 40, 50, 60 and 70,” he said.
“After getting the environmental impact assessment (EIA) permit by financiers, the contract for the construction of these refineries will be signed. These permits have to be taken into account in the design of the refineries.”
Fereidouni said a large number of financiers had volunteered to construct gas condensate refineries and eight of them were selected.
“In case the private sector is willing to invest in this project or the petrochemical sector, it can submit its documents to the Department for Economic Development and Investment Attraction in Pars Special Economic Energy Zone,” he said.
Fereidouni noted that mini refineries are instrumental in converting gas condensates to oil products.
With the construction of these refineries, the necessary feedstock will be supplied by South Pars Gas Field for domestic purposes and products such as gasoline, diesel and naphtha will be exported, which will earn huge revenues for the country.
“It is forecast that nearly 500,000 b/d of condensates would be delivered to gas condensate refineries through a pipeline,” he said.
Bourse, CBI to Sign Cooperation Deal
Domestic Economy Desk
A new chapter will open in the country’s capital market, said the head of Securities and Exchange Organization of Iran.
Ali Salehabadi added, “We will soon witness cooperation for promoting the country’s financial system by signing a joint memorandum of understanding with the Central Bank of Iran (CBI).”
Salehabadi also said some of the fields of cooperation include clarifying the fate of suspended banks, revising the Deposit Guarantee Fund plan, accounting the money withdrawn from bank accounts and issuing Islamic Treasury bonds, IRIB reported.
Meanwhile, Seyyed Ali Husseini, the deputy head of Bourse Organization, said base metals have received 32 trillion rials as finance during March 21-Aug. 22, 2013.
Close to one-third of bourse transactions were conducted online during March 21-Aug. 22, 2013.
Husseini also told the Persian daily Hamshahri that 71 trillion rials of stocks were traded digitally in this period, which accounted for 30 percent of the entire lot.
“Some 210 trillion rials of the transactions were conducted in the bourse in the past five months,” he said.
Husseini noted that the significant growth in online transactions indicates that shareholders are willing to trade online.
“We seek to conduct a huge portion of bourse transactions online. We predict that it will materialize within five years,” he said.
16,600 Quick-Yield Enterprises In Lorestan
Domestic Economy Desk
Some 16,600 quick-yield enterprises are operating in Lorestan province, said the deputy head of Cooperatives, Labor and Social Welfare Ministry.
Hamed Veise Karami said 6.61 trillion rials in facilities have been allocated to these enterprises since the beginning of the year to March 2006.
He noted that quick-yield enterprises generated 25,387 jobs in the province, which ranked first in the last Iranian year (ended March 20, 2013) in terms of allocating facilities to production cooperatives.
Karami said the facilities were procured through the resources of Tose’ Ta’avon Bank (Cooperatives Development Bank).
He noted that 155 billion rials in facilities were allocated to 91 cooperative units of the province last year.
“Interest-free loans worth 630 billion rials have been allocated to household jobs in the years to March 2012 and 2013,” he said.
Karami also said 97 billion rials in self-employment loans were extended to applicants last year.
Farmers Receive Loans
Translated by Katayoon Dashti
Close to 35 trillion rials worth of loans have been earmarked for autumn cultivation, said the managing director of Bank Keshavarzi.
Mohammad Talebi added that Agricultural Jihad Ministry has launched plans to increase the area under cultivation, IRNA reported.
He said negotiations have been held with officials for securing the fertilizers required by farmers.
“In view of the rise in production costs and fertilizer prices, we seek to ease the procurement of fertilizer by opening letters of credit for petrochemical companies,” he said, noting that this will reduce the costs.
Talebi said the National Development Fund (NDF) allocated facilities worth 25.7 trillion rials during 2011 and Bank Keshavarzi added 21 trillion rials to it, noting that these loans were paid to 90,000 projects.
“A 7-trillion-rial deal was signed with NDF in the last Iranian year (ended March 20, 2013),” he said.
“In addition, negotiations have been held with NDF to receive 20 trillion rials in the current year.”
Davar Mahikar, a member of the Board of Trustees of Bank Keshavarzi, said the bank paid 5.9 trillion rials worth of facilities for purchasing agricultural machineries last year.
Mahikar explained that the farmers purchased 45,186 farming machineries such as tractors and combines, Pool News reported.
“Poultry and livestock industries received Bank Keshavarzi’s loans to optimize fuel consumption,” he said, stressing that they currently use modern methods.
On the role of investment in agriculture sector, Mahikar said based on latest research, economic growth is 0.13 percent for every 1-percent rise in value-added of agriculture sector while gross domestic product growth is 0.15 percent for every 1-percent investment in the sector.
In addition, production grew by 0.8 percent in other sectors for every 1-percent rise in agricultural investment.
Ilam province exported $416 million worth of goods to Iraq through Mehran border in the first 6 months of the current Iranian year (started March 21).