The Iranian government has allocated a significant financial resource of 500 trillion rials (approximately $1 billion) to support agricultural projects. This funding will be made available through special investment deposit certificates, aimed at supporting profitable and strategic agricultural initiatives. The Central Bank of Iran (CBI) has approved the issuance of these certificates, which will be distributed through banks to agricultural investors. The focus is on prioritizing strategic agricultural projects that have the potential for long-term growth and profitability.
The special certificates will offer an interest rate of 25 percent for purchasers and depositors, while the cost for investors seeking these funds will be around 30 percent. This financial tool is expected to provide a substantial boost to the agricultural sector, with the hope that it will lead to significant improvements and transformations in the industry.
Currently, there are 100 agricultural projects under consideration, each requiring financial resources of more than 1 trillion rials (approximately $2 million). The government hopes that funding 20 to 30 percent of these projects through the investment certificates will create substantial progress in the sector. The goal is to use these financial resources to improve production, reduce inflation, and prevent an increase in liquidity, which could destabilize the economy.
In addition to the investment certificates, the Central Bank has introduced a new financial instrument called “GAM Certificates” (Forward Credit Certificates). This instrument provides an innovative funding method for agricultural production units, further enhancing the available financial options for investors in the sector. These new tools are designed to align with the Central Bank’s broader economic policies, which focus on reducing inflation and promoting stable economic growth.
The Ministry of Agriculture has emphasized the importance of streamlining access to these financial resources for agricultural producers. Efforts are being made to ensure that eligible agricultural production units will not face bureaucratic obstacles when applying for the funds. Applicants are encouraged to submit their requests directly to the Ministry’s Economic and Planning Department or to specialized divisions and provincial agriculture organizations.
The Ministry is also committed to reviewing and outlining the best ways to utilize these financial tools to their full potential. This includes identifying and eliminating any barriers that might hinder access to the resources. The Ministry’s goal is to ensure that these funds are effectively utilized to support the agricultural sector and drive long-term growth and sustainability.
The allocation of such a large sum to the agricultural sector reflects the government’s recognition of the importance of agriculture to the national economy. By supporting strategic agricultural projects, the government aims to boost production, create jobs, and contribute to the overall economic development of the country. With the help of these new financial instruments, the agricultural sector is expected to undergo a significant transformation, making it more competitive and resilient in the face of future challenges.
