Agricultural Licensing Rounds for Foreign Investors
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November 14, 2016 in [You must be registered and logged in to see this link.], [You must be registered and logged in to see this link.], [You must be registered and logged in to see this link.]
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November 14, 2016 in [You must be registered and logged in to see this link.], [You must be registered and logged in to see this link.], [You must be registered and logged in to see this link.]
By Salam Zidane for [You must be registered and logged in to see this link.]. Any opinions expressed are those of the author, and do not necessarily reflect the views of [You must be registered and logged in to see this link.].
Iraq considers proposal of agricultural licensing rounds for foreign investors
On Oct. 23, the Iraqi parliament’s agricultural committee reported that Iraq imports more than 75% of its vegetables and animal products.
Meanwhile, agriculture experts conducted a study that they presented to the Cabinet on Oct. 22, calling for organizing agricultural licensing rounds to save the agricultural sector from its miserable situation and putting an end to the foreign currency pullout by inviting foreign companies to invest in agricultural land.
On July 19, the [You must be registered and logged in to see this link.] estimated the cultivated land in the country for 2015 at nearly 6 million acres, while the overall arable land is 52 million acres. Agriculture contributes about 7% to the gross domestic product (GDP), which has reached, according to the [You must be registered and logged in to see this link.], $168.6 billion; this is considered to be a very low percentage, especially since Iraq is classified as an agricultural, [You must be registered and logged in to see this link.].
The person behind the idea of agricultural licensing rounds and inviting international companies to invest in Iraq, agricultural expert Riad Farhan Abdul Karim, told Al-Monitor, “The country is suffering from the agriculture sector’s failure because it still follows methods used by the Sumerians, Babylonians and Assyrians when it comes to agriculture and irrigation. Developing this important sector is everyone’s responsibility.”
He said, “I have presented a comprehensive study to the government about agricultural licensing rounds. The government welcomed the idea and said it will be studying it in the coming days, but we are still waiting. For agriculture to prosper, we need to improve how workers do their jobs, increase land production and use modern methods. This can only be done by bringing in international companies.”
Al-Monitor contacted the Ministry of Agriculture, asking the status of the proposal in the Cabinet. A senior adviser in the ministry told Al-Monitor on condition of anonymity that it has received the proposal and asked the council of ministers to discuss it in the Cabinet. He said the ministry approved the proposal and that it now needs Cabinet approval; then it could be passed by the parliament.
Iraq succeeded in organizing [You must be registered and logged in to see this link.] in 2009, when it was exporting [You must be registered and logged in to see this link.] per day, in an attempt to increase production in 2017 to about 13 million barrels per day. So far, it has only produced [You must be registered and logged in to see this link.] a day.
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