An agribusiness review of Iran by a research center, part of Fitch Group, has offered an upbeat assessment of the country’s agriculture sector. 

According to the BMI Research, continued investment by the government to improve infrastructure such as the improvement of irrigation systems will help Iran turn away from its backward agrarian system.

It will yield results in terms of better-quality grains, the report said, adding it was especially upbeat in the group’s outlook for grains and sugar production.

US-led financial sanctions designed to pressure Tehran over its nuclear program played havoc with Iran's ability to import goods, making food price inflation soar.

BMI Research predicted Iran’s wheat production to grow by 6.1% to 15.1 million metric tons in the fiscal 2017-2018.

“Wheat yields are expected to improve owing to the modernization of technology, including hardier grains variants, greater access to relevant inputs and a larger area of the country benefiting from new irrigation facilities,” it said.

It predicted sugar consumption to rise 18.2% to 2.5 million metric tons in the period, mainly driven by population growth.

Poultry production will grow 15.9% to 927,400 tonnes on domestic demand and the effects of increased investment, it said.

Iran’s GPD will grow by 1.4 % in 2014 up from 1.2% in 2014, BMI Research predicted. It saw the country’s gross domestic product averaging 2.7% through 2019.

It also put Iran’s year-on-year consumer price inflation rate at 23.0% in 2015 up from 21.0% in 2014. The center predicted this rate to average 15.8% year-on-year through 2019.

BMI Research also said the outlook for Iran's livestock and dairy sectors in the short- and medium-term is improving, adding a recovery in farm profitability will help production to grow in 2015.

By Press TV