Iran has made significant strides in the development of its agricultural industries and mechanization, with a major investment of 180 trillion rials (approximately $360 million) since the beginning of the current Iranian calendar year in March 2024. This investment is aimed at advancing agricultural processing, mechanization, and the efficiency of resource use, while also contributing to job creation across the country.
The Iranian government, through the Ministry of Agriculture and its Center for Agricultural Mechanization and Industries, has been pushing for substantial improvements in the agricultural sector. A key focus has been the reduction of raw material exports, with the aim of processing more agricultural products domestically. This move not only seeks to enhance the country’s industrial capacity but also aims to prevent the depletion of vital resources such as soil, water, and agricultural inputs, which can be exacerbated by the export of unprocessed agricultural goods.
The scale of the investment reflects a broader strategy to boost agricultural productivity and ensure long-term sustainability. Currently, there are around 1,700 ongoing projects across various provinces of Iran, spanning agricultural processing and complementary industries. These initiatives are expected to have a profound impact on the national economy by increasing the value-added component of agricultural products, reducing the dependency on raw material exports, and improving the overall efficiency of the sector.
The investment includes the allocation of 32 trillion rials ($64 million) in loans for the purchase of agricultural machinery, which is a critical aspect of mechanization efforts. This funding aims to modernize the farming sector, making it more efficient and capable of handling the demands of a growing population. The mechanization of agriculture is also expected to alleviate labor shortages and improve the quality and yield of crops.
Private sector participation has played a crucial role in this development. In fact, over 85 percent of the total investment, amounting to 140 trillion rials (around $280 million), came from private investors during the first half of the year. This demonstrates the growing confidence in the agricultural sector and its potential for profitability. The private sector’s involvement is seen as a positive sign of the sector’s future, as it continues to modernize and diversify.
In addition to the mechanization and processing efforts, there has been a concerted effort to develop agro-processing and complementary industries. Over 5,000 such units are currently under development, with varying degrees of progress, ranging from 40 to 90 percent completion. These projects are expected to create significant employment opportunities, with estimates suggesting that around 240,000 new jobs will be generated in the agro-industrial sector alone. This will provide a much-needed boost to local economies and help alleviate unemployment in rural areas.
Furthermore, the integration of over 30 million tons of raw agricultural materials into processing industries is a key milestone in the country’s push for greater self-sufficiency. By processing more of its agricultural output domestically, Iran aims to add value to its products and reduce reliance on foreign markets. This shift towards domestic processing not only strengthens the economy but also ensures that more of the country’s agricultural resources are utilized efficiently, helping to safeguard the future of the sector.
Overall, the investment in agricultural industries and mechanization represents a comprehensive approach to transforming Iran’s agricultural sector. By focusing on processing, mechanization, and private sector involvement, the country aims to create a more sustainable, efficient, and job-generating agricultural industry that can meet the demands of both the domestic and international markets.
