Financial Constraints: The Main Barrier to Greenhouse Development in Kermanshah

Financial Constraints: The Main Barrier to Greenhouse Development in Kermanshah

Saeed Karimi, in an interview with Mehrnews, highlighted the status of greenhouse production in Kermanshah province, stating that a significant portion of the province’s agricultural and greenhouse product needs is met through domestic production. The greenhouses in the province operate in two main areas: the production of food products and ornamental plants.

He noted that the majority of Kermanshah’s greenhouses are dedicated to agricultural product production, with a considerable number of greenhouse units focusing on the cultivation of items such as tomatoes and other fresh produce, while only a limited portion is allocated to the production of ornamental flowers and cut branches.

The head of the Kermanshah Agricultural Jihad Organization discussed the status of the ornamental flower market in the country, indicating that this market has a centralized structure, with the buying and distribution processes primarily carried out through specific networks. This situation has compelled producers to collaborate with these entities to maintain their consumer market.

Karimi continued, stating that in many instances, direct supply of products to retail units and florists is not feasible, leading to a significant portion of production being channeled through wholesalers to the market.

He emphasized the state of the ornamental flower market in the province, noting that although the production capacity in this sector is considerable, the local consumer market has not yet developed sufficiently to absorb all the production, resulting in some products being sent to other provinces.

The head of the Kermanshah Agricultural Jihad Organization identified the main challenge faced by stakeholders in this field as limited financial resources, stating that flower and plant producers primarily struggle with liquidity issues. This is because these products fall into the category of goods that experience increased demand at specific times of the year, which impacts the financial flow of production units.

He added that securing working capital could alleviate many of the problems in this sector and assist producers in acquiring inputs and maintaining production activities.

In another part of his remarks, Karimi referred to the province’s developmental policies, stating that planning has focused on creating and developing agricultural complexes and towns, as operating within large, centralized units is more economically viable than scattered units.

He announced that 16 agricultural towns are ready to attract investors, stating that the necessary infrastructure for these towns, including water, electricity, gas, and access roads, has been established, and favorable conditions for land allocation to applicants have been considered.

The head of the Kermanshah Agricultural Jihad Organization noted that informational packages have been prepared to introduce investment opportunities and are available to applicants, facilitating a smoother process for investors entering this sector.

In conclusion, he emphasized that all necessary capacities to support greenhouse investors in the province are in place, and eligible applicants can begin their activities in this sector upon obtaining the required permits.

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