Iran’s Export Ban on Fruits and Its Global Economic Implications

Iran has implemented a 60-day export ban on apples, oranges, and dates in response to rising domestic food prices. This decision is expected to significantly affect the global apple market by increasing prices in several regions due to reduced supply. Economists warn that the ban may worsen Iran’s economic situation amid high inflation rates and currency devaluation.

Trade sources from EastFruit report that Iran has imposed a complete ban on the export of apples, oranges, and dates for 60 days, effective February 24, 2025. This decision arises from rising prices for essential food products, which have sparked discontent among the public just before the Ramadan period. Although shipments were still occurring until yesterday, a halt is expected to coincide with the commencement of Ramadan.

As one of the largest apple exporters globally, with shipments reaching up to one million tons in some seasons, Iran’s ban will significantly impact the global apple market. Italy, China, and Poland are the only other countries with comparable export volumes. Iranian apples are crucial in key markets, particularly India, and influence prices in Ukraine, Moldova, and Poland.

The reduction of apple exports from Iran is anticipated to spur apple prices further in the Middle East, Southeast Asia, and Central Asia. Consequently, this surge in prices may also affect Europe and Turkey. The Ukrainian market will likely experience rising apple prices as well, with record-high levels expected to climb even more during March to June.

Analysts at EastFruit criticize the Iranian government’s decision as populist, suggesting it will exacerbate the nation’s existing economic issues. January 2025 saw Iran’s inflation rate estimated at 31.8% year-on-year, although some economists assert that the true rate is potentially 1.5 to 2 times higher.

The Iranian rial’s value has come under scrutiny, trading at approximately 930,000–950,000 IRR per US dollar in the unofficial market in February 2025, a 14% decrease over the past month. This depreciation sharply contrasts with the official exchange rate of 42,000 IRR per dollar for essential goods. The export ban is predicted to further diminish foreign exchange earnings, exacerbating inflation and exchange rate difficulties.

In summary, Iran’s ban on the export of apples, oranges, and dates is a strategic move to address rising domestic food prices ahead of Ramadan. However, this decision will likely have widespread repercussions on the global fruit markets, notably increasing prices in several regions. Furthermore, it may intensify Iran’s economic troubles, particularly concerning inflation and currency value.

Original Source: east-fruit.com