TEHRAN: A sharp drop in the price of Iranian iron goods in the Afghan market has put crippling pressure on the Afghan iron industry that could lead to factories closing, according to the Afghan Chamber of Commerce and Industries (ACCI).
Khan Jan Alakozai, the ACCI’s Deputy Chief, Iran has initiated a dumping policy in Afghanistan in hopes of running their domestic competition out of business and cornering the market in Afghanistan.
The cost of iron equipment imported into Afghanistan from Iran is now said to be around 500 USD per ton, while Afghan iron-wear companies charge 600 USD every ton.
The Chamber of Commerce and Industries has called on the government for a tax exemption for iron processing factories, which they say would enable them to compete with the products coming from Iran.
“Unfortunately, if the government does not give the factories the needed support, meaning a tax and tariff exemption, these factories will go bankrupt, because they cannot compete with the iron imported from Iran,” Mr. Alakozai said.
Officials from the Afghan Industries Organization have expressed concerns about the immediate situation, given that some iron companies are already facing major losses.
“Our companies have many problems, and the government must work in this area, because if the dumping policies are not prevented, factories will shutdown,” Deputy Abdul Rahim Faizan said.
Afghan uses roughly three million tons of iron a year, about 1,000 of which is produced in Afghanistan. There are 13 factories nationwide working with iron.
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