HERAT CITY (SW) – Rampant and unregulated import of goods similar to those produced locally has severely hampered the domestic industry in Herat province.
Entrepreneurs in Herat believe the local industrial zones are unable to compete with the cheap imports of identical products they are manufacturing under harsh conditions.
Seyyed Ebrahim Sadat is managing founder for one of the biscuit production factories in Herat, which he established with investment of $ 6 million a year ago. According to him, the U.S sanctions on Iran, the reduction of the Iranian currency value and the unregulated import of similar goods to Afghanistan has led to drastic fall in his annual revenues from $ 500,000 to $ 100,000.
Criticizing imports of similar domestic products from Iran to Afghanistan, he said that three of his production units are shut down. He added that 60% of his factory supplies are imported from Iran, but Iran's manufactured goods are being sold for cheaper prices than local products. Sadat said that although he has repeatedly called on the government to increase the customs duty on importing similar goods, but to no avail.
Feyaz Ahmad, another industrialist in Herat, said that since 6 months, he has reduced the number of factory workers from 300 to 60 due to the drop in the price of Iranian currency and the import of similar goods from Iran to Afghanistan.
Hamidullah Khadem, the head of the Herat Chamber of Commerce and Industries, is also concerned about the situation. Asserting the local industry can meet the domestic demand, he urged the government to ban the import of similar goods from Iran.
This time it is not the first time that domestic manufacturers complain about the lack of government support for their products.
ENDS