Iran sugar production costs higher

LONDON, September 10 (IranMania) - The production of each kilogram of sugar is much higher than the price of the imported one, Iran Daily reported.

Stating the above to IRNA, Managing Director of Sugar Industries Company at the Mostazafan Foundation Isa Nourishad said unregulated sugar imports has led to a huge reduction in domestic production, adding that last year?s sugar beet output stood at 4.2 million tons whereas a year earlier it was 6.7 million tons.

According to him, this year?s production has been slashed to just about 1.5 million tons and because of dumping practices Iranian sugar cannot compete with its imported rivals.
The level of domestic demand is around 1.9 million tons per year, but official figures estimate that over three million tons of cheap sugar that undercut local produce have been imported.

Mafia groups based in neighboring countries are also trying to disrupt Iran?s sugar market by purchasing the product in bulk and creating an artificial shortage, said a local authority in Iran?s sugar industry hub, Khuzestan province.

Massoud Hosseinpour, who heads Khuzestan Industry and Mine House, said the increase in sugar prices comes at a time when the industry has managed to boost production significantly.

Sugar output exceeded domestic demand for the product last year, he said, adding that the shortage and high prices have to be investigated. He said the sugar mafia is run by domestic elements operating from abroad.

Sugar industry experts believe that Iran could attain self-sufficiency in sugar in coming years with the implementation of giant Sugar Industry Development Project.

source:iranmania