Iran to Become Regional Food Hub Through North–South Corridor

TEHRAN (Iran News) Speaking at a specialized meeting held Sunday in Sari, the capital of Sari, Gholamreza Nouri Ghezeljeh highlighted Iran’s extensive agricultural and infrastructural capacities. The session focused on reviewing obstacles and proposing solutions for the import of essential goods and livestock feed inputs.

The meeting was attended by senior provincial officials, including the governors of Mazandaran Province, Golestan Province, and Gilan Province, along with high-ranking local authorities and representatives of the private sector.

Emphasizing Iran’s geographical advantage, Nouri Ghezeljeh stated that the country’s location along the North–South Corridor, combined with rising food demand in Africa, positions it to become a central food distribution point for the region. He noted that the corridor enhances connectivity between South Asia, the Middle East, Russia, and Europe, creating new opportunities for trade in essential agricultural commodities.

The minister underscored that Iran has already developed infrastructure well beyond its domestic needs in several key sectors. “In flour milling, oilseed processing, and animal feed production, we have built infrastructure equivalent to three times the country’s current requirements,” he said.

According to the minister, Iran’s flour industry has a total installed capacity of 30 million tons, yet only about 10 million tons are currently utilized. In the oil extraction sector, he added, the country is capable of processing up to five million tons annually. These figures, he said, reflect the country’s readiness to expand its role as a processing and re-export hub for agricultural commodities.

Addressing food security concerns ahead of the holy month of Ramadan and the Persian New Year (Nowruz), Nouri Ghezeljeh confirmed that the government has secured and stored three times the projected domestic demand for essential goods. In a first-time development, he noted, 25,000 tons of goods were simultaneously handled at northern ports alongside southern ports, signaling improved logistical coordination and enhanced trade flows.

The minister also stressed the importance of granting greater executive authority to provincial governors in order to resolve economic and commercial bottlenecks more efficiently. He revealed that specific operational barriers have been identified in alternative import mechanisms, including imports without foreign currency transfer and barter trade arrangements. He issued directives for serious follow-up measures to address these challenges.

Providing further context, Nouri Ghezeljeh stated that Iran currently faces an approximately $8 billion trade deficit in the agricultural and food sector, with $16 billion in imports compared to $8 billion in exports. To address this imbalance, the government had introduced several measures aimed at facilitating imports. These included small-scale border trade mechanisms such as sailor imports and cross-border porterage, as well as larger frameworks like imports without currency transfer and barter agreements.

However, the minister acknowledged that the performance of these mechanisms—particularly the import schemes without foreign currency transfer and barter arrangements, which had been emphasized by the president—has fallen significantly short of expectations. “Despite the approvals and efforts made, we have not witnessed substantial progress in this area,” he said, adding that a portion of imports has instead shifted toward traditional methods such as small-vessel trade.

He further announced that, by order of the president, regional meetings with governors across the country have been placed on the agenda to conduct a thorough assessment of the issue and evaluate the reasons behind the shortfall in achieving set targets.

Referring to the government’s earlier decision in recent months to lift certain restrictions on the import of essential goods until the end of the year, Nouri Ghezeljeh emphasized the need for a detailed review of why the announced processes—particularly imports without currency transfer and barter trade—have not delivered the anticipated results.

Concluding his remarks, the minister reiterated that strengthening Iran’s logistical capabilities through the North–South Corridor, maximizing idle industrial capacity, and removing trade bottlenecks would play a crucial role in transforming the country into a regional hub for food production, processing, and distribution.