The government of Iran has imposed a new tax of 40 per cent on exports of chicken as authorities struggle to maintain stability in the domestic market.
In a letter addressed to Iran’s customs administration by the ministry of commerce, the government said chicken exporters will now pay 50,000 rials ($0.4) for each kilogram of white meat sold to foreign customers.
The new tariff comes as exports to neighbouring countries like Iraq and Turkey have become more attractive. Output has also surged this year and demand for cheap Iranian white meat keeps surging across the borders.
The directive takes effect from August 28, 2019.
Iran is one of the biggest producers of the poultry items in the world and a bulk of the output serves to satisfy an increasing domestic demand.
Chicken is currently sold inside Iran at a government-ordered price of between 120,000 to 130,000 RLS (just above a US dollar) for each kilogram.
The government announced recently that Iran’s annual chicken production had exceeded 2.5 million tons a year. Authorities in the Iranian agriculture ministry said there was also an oversupply of egg in the country with a record production of more than 900,000 tons a year.