May 12, 2023
Seventy percent of Iran’s production capacity for candies, cookies and other sweets are now shut down, as the end of subsidized currency for agricultural imports has battered the industry.
The secretary of the Sweets and Chocolate Producers Association says the output of sweets declined to 800,000 tons in the just-ended Iranian year from 2.6 million tons in the
previous year.
Jamshid Maghazei blamed the decline on such problems as foreign currency fluctuations, difficulty in obtaining raw materials and lack of working capital. He did not suggest that Iranians had curbed their sweet tooth desires because of raging
inflation.
“A total of 960 factories were operating in this industry in the past, but under the circumstances, some small production units have become inactive or
converted their business.”
According to the official, the average annual export of sweets and chocolates added up to $1 billion in past years. “In 2021-22, one-sixth of the production volume or about 300,000 tons were exported to 66 countries, including European countries, the US, Persian Gulf countries, and those in East Asia,” he said. US sanctions bar-
ing imports from Iran do not cover food products.
He said currency fluctuations and the end of subsidized foreign currency for imports
make it more difficult to obtain raw materials.
“The removal of the preferential foreign currency also caused us to face a fourfold increase in the price of raw materials in this industry. For example, the price of sugar, which was 45,000 rials before these conditions, reached 200,000 rials and the price of edible oil has increased sixfold,” he said.
