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Iran imposes harsh tariff on chick exports amid surge in domestic prices

Iran imposes nearly 40 percent of tariff on chicken export to control domestic prices.

Iranian government has imposed a harsh tariff on exports of chicken as authorities struggle to maintain stability in the domestic market.

A Tuesday letter by the ministry of commerce addressed to Iran’s customs administration said that chicken exporters should pay 50,000 rials ($0.4) for each kilograms of white meat sold to foreign customers as of August 28, 2019.  

The new tax comes as chicken is currently sold inside Iran at a government-ordered price of between 120,000 to 130,000 RLS (just above a US dollar) for each kilogram.

It also comes as exports to neighboring countries like Iraq and Turkey have become more attractive as output has surged this year and demand for cheap Iranian white meat keeps surging across the borders.

The government announced recently that Iran’s annual chicken production had exceeded 2.5 million tons a year while insisting that exports would be an option for producers facing rising stocks and idle capacity in the farms.

However, the Tuesday announcement showed authorities were serious to impose restrictions that could allay concerns about surging prices and their potential impact on food security in the country.

Iran is one of the biggest producers of the poultry items in the world and a bulk of the output serves to satisfy an increasing domestic demand.

The industry is hugely dependent on government regulation as most of the farmers across Iran still rely on subsidized fuel to run their hatcheries.

Authorities in the Iranian agriculture ministry said on Tuesday that there was also an oversupply of egg in the country with a record production of more than 900,000 tons a year.


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