Isfahani producers have many demands from the authorities in the year named as “inflation control, production growth”. Isfahan is the most industrialized province of the country and despite having large, small and medium producers, it plays a significant role in the production of the country.
Isfahani producers have many demands from the authorities in the year named as “inflation control, production growth”.
Isfahan is the most industrialized province of the country and despite having large, small and medium producers, it plays a significant role in the production of the country. Many obstacles have been put in the way of Isfahan producers and deprived them of the power of decision making and planning.
The growth of production requires foundation. In the situation where the exchange rate and the increase in production costs have led some producers to produce at a loss and continue their activities. Achieving the goals of production boom requires economic stability, easing of laws and investment, privatization, efficient management, improvement of business environment, economic security, cost reduction, exchange rate stability and timely supply of raw materials.
In a conversation with Isfahan Ziba, Isfahani producers say the main obstacles to production growth and solutions to improve the production situation this year:
The instability of the economy made the producer indecisive
Masoud Bakhtiari/CEO of one of Isfahan’s food industry factories
Economic instability and uncertainty is the main concern of us producers. We still don’t know what the government’s decision is about the Nimai currency. Is Nimai’s currency 28,500 tomans? Or is Nimai currency equivalent to 33 thousand tomans?
Or is Nimai’s currency offered at a price of 38,500 tomans? Unfortunately, various narratives are put forward by the authorities, which deprive the producer of decision-making power.
The manufacturer must operate in a transparent environment to make decisions. The government not only does not create this clear space, but has made this space dark. Officials speak contradictingly and producers don’t know who to follow.
Unfortunately, there is no stability in the decision-making environment of the country, and uncertainty about the future of the producers has plagued them. The decisions taken by the government are momentary. In fact, they do not create the groundwork in advance and there is no consultation with the stakeholders and the private sector. In fact, governments consider themselves to be the common sense for decision-making.
Numerous non-professional circulars of Khalq al-Sa’a have also become problematic from the authorities. In times of crisis, directives are issued, but since these directives are unprofessional, they become the basis for several other crises. Another of our biggest problems is the supply of raw materials and liquidity for raw materials.
For some time now, banks have not provided working capital for production units as in the past. Therefore, providing working capital for the supply of raw materials is one of our biggest concerns in the food industry.
Prescriptive pricing is another obstacle for manufacturers whose products require ex ante pricing. That is, the price of these goods should be determined by the country’s market regulation headquarters. The statesmen must deal with the big problems at the highest levels. Like currency problems, rather than wanting to focus on minor issues such as ex-ante pricing.
Unfortunately, the price of raw materials has been left alone. The market regulation headquarters has announced the price of canned fish at 39 thousand tomans. This is despite the fact that the price of canned fish raw materials at the time of notification was equivalent to 52 thousand Tomans per kilo. Even now, the price of each kilo of raw fish is 82 thousand tomans, but they still inform us that you should offer the price of canned fish at the price of 39 thousand tomans. Despite these interpretations, there is no room left for the producer.
On the other hand, the strictness of executive bodies is another problem that has plagued producers. Officials should prioritize the economy. In order to achieve this goal, international interactions must be formed.
Unfortunately, the economy has always been held hostage by politics. The doors of the country should be opened to the countries of the region and the world. These interactions should be established as long as the opportunities are not lost. In addition, governments should create an atmosphere of hope in the society in order to maintain social capital.
Workers of production units migrate!
Ali Safar Nurullah / entrepreneur and founder of accelerator
The cost of production in Iran is high. The reason for the high cost of production is the increase in inflation and the increase in the cost of living. On the other hand, productivity is also low. Because there is no necessary and sufficient knowledge, and there are no facilities that lead to increased productivity. In fact, on the one hand, costs have increased and on the other hand, productivity has decreased. When costs increase, the price of products will also increase.
In order to prevent these problems, the main task is for the government to stop making momentary decisions and provide facilities for producers to increase their productivity and access foreign markets.
The government should solve the political problems so that the producers can reach the international markets. In addition, the government must provide the necessary infrastructure and support the private sector so that exports can flourish.
In fact, governments cannot export. In this case, it leads the producer to the abyss of destruction. The government should support the private sector so that the private sector can export. The price of raw materials is another problem that manufacturers struggle with. The price of raw materials fluctuates due to changes in the dollar price, making the situation unpredictable for manufacturers.
In the meantime, the provision of specialized human resources has also become more important. At present, specialists have tended to migrate, and the technician force has become scarce for production units.
This situation also applies to the supply of workers. I recently had a trip to Armenia where Isfahani workers were employed in the construction of this country and they said that their incomes are more and their problems are less. In addition, producers have also faced problems with labor migration.
Financing is the main problem of producers
Amir Keshani/ CEO of Printing and Packaging Group
Investment is the most important factor affecting production prosperity. Investment leads to the reduction of inflation and lays the foundation for growth and production dynamics. Now the biggest concern of the producers is to provide financial resources.
In fact, banks do not have the necessary resources, and investors who are looking to invest in the production sector, when they see that they can earn a year’s profit in other markets such as gold, currency and housing, they no longer see a reason to invest in the production sector. Our country needs investment in production.
Many factories are working with less capacity. This issue should be resolved and planned for in order to witness the boom in production. We have to move towards investments where the raw materials required for their production are provided internally.
Some producers have problems in supplying raw materials. The reason is that raw materials are exported. For example, petrochemical raw materials are needed by many producers; But it is issued. Raw materials must be converted into value-added products inside the country and then exported.
In this case, domestic industries will be established and added value will be created. Marketing and finding export markets is another problem that producers struggle with. But it should be noted that marketing is beyond the responsibility of governments. The government should only make policies and provide the necessary platforms. Marketing is the responsibility of the private sector.
Domestic marketing is no longer the answer and manufacturers must market to export markets. In addition, investors should also invest in the field of production that can be exported.
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