June 22, 2004

Expensive Production Threatens Iran's Shrimp Export
 

The reduction of world shrimp prices in recent months have been affected by the supply of shrimp exceeding the demands of world markets, and U.S. laws regarding the import of the commodity along with other factors in Iran.

"With the U.S., as the largest importer of shrimp in the world, imposing a 20 percent tax on imports of the product from the six main producer countries, the export has been diverted to destinations in Europe. As a result we are witnessing instability in the shrimp market as well as a reduction in the world prices," said Gholam Reza Mansuri, a member of the presiding board of Iran's Union of the Sea Food Exporters.

Criticizing the lack of government support for exporters, Mansuri noted that, due to the stability in the Forex values, high banking interest rates (20 percent), and the increase in the labor wages, the finished price of the commodity has increased; resulting in an inability by shrimp exporters to compete in the world shrimp markets.