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Sun, Apr 30, 2006
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Commerce Minister:
Decentralization A Priority
Will Tehran Fairgrounds Be Moved to Zanjan?
Ahmadinejad, Singh Discuss Gasline
MP Scrutinizes Price Hikes
Cabbies Raise Fares
Ostrich Meat on Menus by Sept.
Caspian Chambers of Commerce to Meet in Mashhad
Control Over Rug Supply, Not Prices
World’s Largest Aromatic
Project in Asalouyeh

Commerce Minister:
Decentralization A Priority
Will Tehran Fairgrounds Be Moved to Zanjan?
ZANJAN,
April 29--The Ahmadinejad administration is seriously following up its much-publicized decentralization plans, Commerce Minister Seyyed Massoud Mirkazemi said in this western city on Saturday, stressing that the government believes that there is no need for everything to be based in Tehran.
According to ISNA, the minister further said during his visit to Zanjan’s Caspian International Fairgrounds that the government will extend greater support for provincial economic and administrative activities.
“We are willing to see provinces further activated,“ he maintained, stressing that the government is encouraging provincial areas to establish international relations in order to boost exports and create jobs.
The first phase of the three-phased project to construct Zanjan’s Caspian International Fairgrounds will become operational in the near future. Some 100 billion rials has been invested in the first phase, which has a total area of 23,000 square meters.
Local authorities in Zanjan have asked the Commerce Ministry to relocate the Tehran International Fairgrounds to the western city.
“Let us conduct more studies on this matter and make the decision after your project is completed,“ Mirkazemi told the Caspian International Fairgrounds’ officials who demanded relocation of Tehran’s giant fairgrounds to their city.
The minister reiterated that there is a strong will on the part of the government to pursue decentralization.
Last month, the head of the International Exhibitions Joint Stock Company said private sector is supposed to construct a new venue for Tehran’s International Fairgrounds, adding that the government has not earmarked any budget for the purpose. Qavam Shahidi said the project will be implemented on the basis of a BOT (build, operate, transfer) contract, stressing that the issue of relocating the fairgrounds has given its place to expanding exhibition areas by finding new locations.
“A metropolis like Tehran needs several fairgrounds,“ he said.
He said a large area near the east Tehran satellite town of Parand has been allocated for constructing the new fairgrounds.
The long-sought transfer of Tehran’s ’Permanent’ International Fairgrounds has turned into a dream for residents of the chic north Tehran districts and those who hope to make use of the vast tract of land that will be put at their disposal once the fairgrounds are relocated.
However, it remains unclear whether the project will fall under the decentralization scheme, or not.

Ahmadinejad, Singh Discuss Gasline
TEHRAN, April 29--President Mahmoud Ahmadinejad said on Friday that Iran is ready to reach a fair agreement with India and Pakistan on the proposed gas transmission pipeline project.
According to IRNA, Ahmadinejad made the remarks in a telephone conversation with Indian Prime Minister Manmohan Singh while pointing to his recent phone talks with Pakistan President Pervez Musharraf on the issue.
Referring to the deep-rooted, friendly ties and cultural bonds between the Iranian and Indian peoples, the Indian premier expressed the two sides’ willingness to further bolster bilateral relations in all fields.
India intends to expand and consolidate ties with Iran. It believes one or few specific stance on certain issues can have no impact on mutual relations given the two countries’ great potentials for bolstering ties, he said.
Singh added that promotion of Tehran-New Delhi ties would be beneficial for both sides and the entire region, saying India is determined to implement the proposed Iran-Pakistan-India gas pipeline project.
He stressed his country would continue efforts to reach a tripartite agreement on the project.
The Iranian president and Indian prime minister stressed the importance of setting a schedule to sign a deal on the gas transfer project.
If Iran, India and Pakistan fail to reach an agreement within the next few months, they plan to hold a session in Tehran to discuss the case, he said.

MP Scrutinizes Price Hikes
Cabbies Raise Fares
TEHRAN, April 29--Frequent withdrawal of fund from the Foreign Exchange Reserve Account, injection of oil revenues into the monetary system and the huge liquidity growth have caused prices of goods and services to go up, said a lawmaker here on Saturday.
Adel Azar, a member of Majlis Plan, Budget and Audit Commission, told ISNA that price hikes were expected given the inflationary budget and growing liquidity.
The parliamentarian said taxi fares have increased remarkably, stressing that relevant authorities have failed to control the situation.
“Municipalities are practically exercising no supervision over public transportation, of which taxis account for 50 percent,“ he said, admitting that the imbalance between supply and demand is also to blame for high taxi fares.
He further noted that Iran’s economy is an inflationary one, stressing that inflation rate is expected to exceed 15 percent in the year to March 2007.
“Inflation going up this year should not come as a surprise to us, but what is worrisome is the exorbitant prices of goods and services produced by state organizations,“ he said.
A senior banking expert said Friday that liquidity growth reached 30 percent in the year to March 2006 despite all efforts by the administration and the Central Bank of Iran (CBI) to bring this under control.
Ahmad Mojtahed, who heads the CBI Monetary and Banking Research Center, said the government had ordered the sales of participation bonds and mobile phone SIM cards in order to slow down liquidity growth, adding, however, that efforts by the CBI to tame inflation were also affected by high liquidity growth.
Had the government not adopted such mechanisms, liquidity growth rate would have gone up much higher, he said.
Experts are unanimous that liquidity growth is responsible for high inflation.

Ostrich Meat on Menus by Sept.
049518.jpg
Iran, due to its amazing climatic diversity, is one of the best places to breed ostriches, say experts.
TEHRAN, April 29--Some two tons of ostrich meat have been distributed nationwide in the past 10 days, said the head of State Ostrich Farming Cooperative Company here on Saturday.
Parviz Niamanesh told ISNA that mass production of ostrich meat will begin in September. “Ostrich slaughtering has started on a trial basis,“ he said, adding that the population of the bird reached 13,000 in Iran during March 2005-2006.
He further said that ostrich meat will not be exported as long as domestic demand remains high.
“We will begin ostrich meat exports to the Netherlands once supply matches domestic demand,“ he maintained, stressing that the company will try to encourage public to consume ostrich meat.
Niamanesh said earlier that ostrich meat will be sold at 100,000 rials (about $11) per kilo in Iran. He, however, pointed out that ostrich meat sells for 12-15 euros per kilo in Europe and $15 in United States.
Presently, some 130 ostrich farms are operational throughout the country.
Experts say ostrich farming is quite economical in Iran given the appropriate climatic conditions.
Dutch firms have agreed to import ostrich meat from Iran.
Belgian firms have also reportedly been in talks with Iranian officials on a joint ostrich farming project here.
Ostrich is the largest living bird, which has found a place on the menu, delivering red meat flavor with less fat.
Ostrich is already a popular menu item at upscale American and European restaurants. It is poised to become the premier red meat of the next century.
Iran, due to its amazing climatic diversity, is one of the best places to breed ostriches, say experts.
Scientific research studies indicate that ostriches reach maturity earlier in Iran than in any other countries. They mature at 18 months in Iran, whereas domesticated ostriches reach maturity at 2 to 3 years of age in other parts of the world.
Ostrich is similar in taste, texture and appearance to beef. And it is comparable to beef in iron and protein content. But Ostrich has less than half the fat of chicken and two-thirds less fat than beef. Ostrich beats the competition with fewer calories too.

Caspian Chambers of Commerce to Meet in Mashhad
MASHHAD, Khorasan Razavi, April 29--The Eighth Meeting of Caspian Sea Littoral States’ Chambers of Commerce will be held in this northeastern city during May 2-4.
According to ISNA, Asadollah Asgarowladi, who heads the joint chamber of commerce with Russia, said the meeting will help costal countries obtain first-hand information about available business and transit opportunities in the northeastern province of Khorasan Razavi.
He said senior economic authorities from Russia and other littoral states will participate in the meeting.
“Iran-Russia Joint Chamber of Commerce is operating for 65 years now and has played a key role in developing trade between Iran and Commonwealth of Independent States (CIS),“ he said, adding that the chamber will open a branch in Khorasan.
He blamed the banking system for its failure to cooperate with the CIS banks, stressing that the rail link between Iran and Central Asian countries has also not been activated due to technical problems.
He said the Central Bank of Iran signed a banking cooperation agreement with Russia four years ago, adding that the problem remains unsolved with other former Soviet republics.

Control Over Rug Supply, Not Prices
TEHRAN, April 29--Iran controls a major portion of the world’s hand-woven carpet supply, said a carpet industry official here on Saturday, adding, however, that the country does not have leverage over pricing mechanisms.
According to Fars news agency, Mohammad Baqer Majd, Carpet Joint Stock Company’s commercial manager, told reporters that marketing of Persian rugs has increasingly become costly, stressing that carpet production has declined in some provinces.
“For instance, in Markazi province, which is the cradle of hand-woven Persian rugs, there has been a significant decline in rug production,“ he said, calling for an investigation into the matter.
Majd said Iran-made quality raw materials are smuggled to Afghanistan and Pakistan, adding that some Iranian weavers have to use polyester instead of natural wools.
He said China, India and Pakistan sell carpets at low prices on the international markets.
Iran has embarked on a series of publicity programs to advertise its fine Persian rugs internationally in view of the declining share of the country in the lucrative business over the past years.
An Arab satellite TV channel will advertise fine Persian rugs. The Arab Tourism Channel (ATC) has taken photographs of world-famous Persian rugs as part of the groundbreaking project.
A number of TV teasers have also been produced in the past few months and will soon be aired by ATC.
Talks are also underway with a number of European TV channels on advertising Iranian rugs and carpets that enjoy international fame despite competition from some emerging Asian carpet producers.
It was also announced earlier that the palaces of Omani leader Sultan Qaboos bin Said would be adorned with fine Persian rugs.
Iran exported $370.5 million worth of fine rugs and carpets during March 2005-January 2006.
Some 67 percent of the consignments went to Germany, the United States, the United Arab Emirates, Italy and Japan.

World’s Largest Aromatic
Project in Asalouyeh
TEHRAN, April 29--The world’s largest aromatic project will become operational in the oil-rich southern region of Asalouyeh, Bushehr province in the coming months.
According to Iran’s Economic News Agency, the Fourth Aromatic Project--considered as the world’s largest given its production capacity of 4.5 million tons per annum--will go on stream by September. Work on the project began in 2000.
The key aromatic project has so far cost $913 million.
The first, second and third aromatics are located in Isfahan Petrochemical Complex, Bandar Imam and Bandar Mahshahr petrochemical plants.
Under the petrochemical industry’s 10-year perspective, some $27 billion has to be invested in the key sector by 2015, when ethylene production will reach 12 million tons, polymer output will hit 10 million tons, methanol production will increase to 7.5 million tons while production of chemical fertilizers will hit 8.5 million tons and aromatic products will amount to 4.5 million tons per annum.
Investments in the petrochemical industry are mainly in the form of foreign finance. This is while controversies over use of foreign capital in national projects continue. Experts believe that the industry is also affected by low prices of petrochemicals.