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Home News ESG

Iran oil self-sufficiency to reach 40% within a decade

Staff Writer by Staff Writer
12/30/2025
in ESG, Finance & Markets, Geopolitics
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Key Takeaways:

  • Iran aims to raise Iran oil self-sufficiency from roughly 9–10% to 40% within ten years through targeted agricultural policies.
  • Guaranteed prices for oilseed crops, expansion of contract farming and support for seed producers are central measures.
  • Promotion of low-water oilseeds such as camelina, safflower, sesame and rainfed sunflower will conserve water while boosting output.
  • Policy changes to raw oil and seed imports, including domestic purchase incentives, are intended to protect and grow local production.


Iran targets major rise in oilseed self-sufficiency over next decade

Iranian agriculture authorities say the country can raise its oilseed and edible oil self-sufficiency from roughly 9–10% today to 40% within the next ten years, provided planned policy measures are implemented and climatic and water conditions permit. The announcement sets out a mix of price supports, seed-sector investment and crop diversification designed to expand domestic production and reduce reliance on imports.

Iran oil self-sufficiency plan and measures

Sadeq Mansouri, acting head of the Cotton and Oilseed Department at the Ministry of Agriculture’s Crop Affairs office, told Tasnim that setting appropriate guaranteed prices for oilseed crops and announcing those prices before autumn sowing would be an effective step. Early, predictable pricing is intended to encourage farmers to include oilseeds in rotation with winter grains and other competing crops.

Mansouri noted that, taking into account the country’s climate and available water and soil resources, reaching 40% self-sufficiency in edible oil over a decade is feasible. At present, he said, the country’s self-sufficiency rate stands at between 9 and 10%. The seventh development plan, he added, has a more modest interim target of 20% for oil and oilcake production.

Supporting seed producers and contract farming

Among the measures outlined by the department are strengthening domestic seed producers, especially knowledge-based and capable companies, to reduce dependence on imported seed. Officials plan to promote contract farming for oil crops through private sector partnerships, partly by subsidising production costs and offering existing incentives to growers and processors.

These measures are intended to shore up the entire oilseed value chain, from seed development to final processing, by creating clearer market signals and improving access to high-quality seed. That, in turn, should encourage farmers to allocate more land to oilseed cultivation.

Focus on low-water oilseeds and import policy

The ministry is prioritising the expansion of low-water-demand oilseeds that suit Iran’s varied climates, naming camelina and safflower as candidates to be grown in rotation with rainfed winter cereals. Officials also plan to expand spring and summer cultivation of drought-tolerant crops such as sesame and rainfed sunflower.

Mansouri said the department will also review the import process for crude oil and oilseeds to better protect domestic producers. One proposed approach is a policy of allowing imports conditional on supporting domestic purchases of local seed, creating an incentive structure that balances trade needs with the objective of strengthening local production.

Taken together, the measures aim to increase yields, expand cultivated area of suitable crops and improve the resilience of the oilseed sector. For Iran, achieving higher self-sufficiency would reduce import bills, support rural incomes and strengthen food security—objectives that align with wider regional efforts to boost agricultural capacity and trade within allied economies.

Officials emphasise that progress will depend on continued investment, effective implementation of the stated incentives and the availability of water resources. If those conditions are met, authorities say Iran has a credible pathway to significantly reduce its dependence on imported edible oil over the coming decade.

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