Iran has enacted a 60-day export ban on apples, oranges, and dates to curb rising food prices, impacting global markets. This could lead to increased prices in various regions, including Europe and Central Asia. Analysts believe this action may worsen Iran’s existing economic challenges, including high inflation and currency devaluation.
Recent reports from EastFruit indicate that due to escalating prices for essential food items in Iran, the government has enacted a comprehensive ban on the export of apples, oranges, and dates for a period of 60 days. This decision, likely starting on February 24, 2025, has created unease before the upcoming month of Ramadan. Despite this announcement, some shipments may have continued as recently as yesterday.
Iran is a significant player in the global apple market, exporting up to 1 million tons in peak seasons. This export ban will markedly affect apple pricing globally. The countries of Italy, China, and Poland are comparable in export volumes. Furthermore, Iranian apples maintain a substantial presence in the Indian market, and their absence could elevate prices in the Middle East, Southeast Asia, and Central Asia, influencing prices in Europe and Turkey.
EastFruit analysts point out that this governmental action is politically motivated but will likely worsen Iran’s economic troubles. Official inflation was recorded at 31.8% year-on-year in January 2025, while real inflation rates may be significantly higher. Additionally, the Iranian rial has seen a concerning drop in value on the black market exacerbating economic instability.
As of February 2025, the exchange rate for the Iranian rial was approximately 930,000–950,000 IRR per US dollar on the unofficial market, marking a 14% decline in one month. This falls drastically short of the official exchange rate of 42,000 IRR per dollar for essential imports. The export ban is expected to reduce foreign exchange earnings further and compound inflation and currency issues.
In conclusion, the Iranian government’s decision to ban apple, orange, and date exports is a strategic yet populist response to economic unrest. This action is anticipated to drive global fruit prices higher, particularly impacting markets in the Middle East and Europe. Meanwhile, it fails to address deeper systemic economic issues, amplifying the inflation crisis within Iran.
Original Source: east-fruit.com
