Iran’s Export Ban on Fruits: Implications for Global Markets and Economy
Iran has implemented a 60-day export ban on apples, oranges, and dates due to rising food prices and public dissatisfaction ahead of Ramadan. This will significantly affect global apple markets, particularly in India and various other regions. The ban is expected to further elevate prices in the Middle East, Asia, and possibly Europe. The Iranian economy is already facing high inflation and currency devaluation, which the ban may further exacerbate.
Trade sources from EastFruit indicate that Iran has imposed a temporary export ban on apples, oranges, and dates for a duration of 60 days. This decision arises from escalating food prices causing public discontent as the holy month of Ramadan approaches. The ban is expected to commence on February 24, 2025, although some shipments had still been occurring recently, likely ceasing in alignment with Ramadan’s start date.
As a significant global exporter of apples, with seasonal exports reaching up to 1 million tons, Iran’s decision will considerably affect the global apple market. The only other countries with comparable export volumes are Italy, China, and Poland. Iranian apples are particularly influential in markets such as India, and they also play a crucial role in shaping prices in lower segments of the apple markets in the UAE, Uzbekistan, and Kazakhstan, affecting Ukraine, Moldova, and Poland as well.
The anticipated reduction in Iranian apple supply is expected to further elevate apple prices in the Middle East, Southeast Asia, and Central Asia, which may subsequently influence prices in Europe and Turkey. The Ukrainian market may also experience price increases, with record-high apple prices projected to climb even further from March to June 2025.
Economic analysts from EastFruit characterize the Iranian government’s export ban as a populist measure that will worsen the nation’s economic issues. Official inflation in Iran was recorded at 31.8% year-on-year as of January 2025, but some economists suggest actual inflation figures could be one and a half to two times higher, indicating a severe economic crisis.
Moreover, the Iranian rial’s exchange rate in February 2025 on the unofficial market plummeted to approximately 930,000–950,000 IRR per US dollar, reflecting a 14% drop in just a month. The official exchange rate remains fixed at 42,000 IRR per dollar for essential goods, which contrasts sharply with the black market rates. This export ban is expected to diminish foreign exchange revenue further, worsening inflation and exchange rate challenges.
In summary, the Iranian government’s recent export ban on apples, oranges, and dates is a significant development that will impact global commodity markets, notably raising prices in various regions. The move is viewed as a reaction to public discontent over rising food prices, but it may exacerbate the country’s already troubling economic situation marked by high inflation and currency depreciation. The implications of this ban are likely to ripple through markets, particularly affecting regions reliant on Iranian fruit exports.
Original Source: east-fruit.com