Agricultural support services company, for Iranian farmers

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27 February 2024

Agricultural support services company, for Iranian farmers

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History of Agricultural Support Services Company(ASSC, Iran)

For the first time in the beginning of the first decade of 1300 AH, an institution with small facilities located in "Hesarak Karaj" was set up by the then government for the purpose of importing Pesticides. In 1309 AH, "Karaj Pesticides Factory" was built and put into operation, and the production of Pesticides in "Karaj Hesarak Institute" was also transferred to this factory. In 1321 AH, "Chemical Company" affiliated to the then Ministry of Agriculture was established for the purpose of producing and importing chlorine and phosphorus pesticides, and with the cooperation of "Karaj Pesticides Factory" (established in 1309 AH), it produced several types of chemical fertilizers. With the aim of preparing, formulating, packaging and selling plant pesticides, the establishment license of "Chemical and Agriculture Joint Stock Company" was issued by the then "Ministry of Agriculture" in 1334 AH. In 1352 AH, "Chemical Fertilizer Distribution" (established in 1346 AH) was joined to the Ministry of Agriculture by the then government, and in 1354 AH, it was merged with "Chemical Company". In 1359 AH, "Agriculture Chemical Company" was merged with "Chemical Fertilizer Distribution Company" and "Chemical Fertilizer Distribution and Pesticides Production Company" was established.

In 1367 AH, in order to improve the quality and increase the production of agricultural products through the production, supply and distribution of modified and high-quality seeds and seedlings in the country, "Seeds and Seedlings Production, Supply and Distribution Company" affiliated to the Ministry of Agriculture was established. In 1369 AH, "Saweh Herbicide Production Company" also joins it. Finally, in February 1371 AH, "Chemical Fertilizer Distribution and Pesticides Production Company" was merged with "Seed and Seedling Production, Supply and Distribution Company" and "Agriculture Support Services Company" was formed. In 1383 AH, "Agricultural Machinery Development Company" was dissolved and its executive functions were transferred to "Agricultural Support Services Company".

Today, the Agricultural Support Services Company, relying on nearly a century of operational experience in the field of supply, procurement and distribution of agricultural inputs, is the most reliable and well-known Iranian brand in this field at the international level and with the support of a capillary distribution network with 3500 distribution brokers. Agricultural inputs throughout the country and the timely and quality supply of all types of inputs needed by Iran's agriculture are trusted by Iranian farmers and a reliable means of ensuring food security for the Ministry of Agricultural Jihad.


Duties of agricultural support services company

According to its charter, the duties of the Agricultural Support Services Company (ASSC) include production, procurement, procurement, distribution, transportation and purchase and sale of all kinds of seeds and seedlings, pesticides and plant diseases, all kinds of agricultural fertilizers and supply and procurement of all kinds of agricultural machineries, needed by farmers

The range of activities of the company includes agricultural support services throughout our country. The company's head office is located in Tehran, and "Abyek Chemical Complex" and "Karaj Applied Studies Center of Agricultural inputs" are also operating under the supervision of the company's headquarters. Also, the company has (32) branches in the provinces and (3) representative offices in the ports of Imam Khomeini (BIK), Bandar Abbas and Chabahar, where Bandar Imam representative is managed independently and Bandar Abbas and Chabahar representatives are managed under the management of their provincial branches of the Company


ASSC's announced program of 1402 AH and its performance

The total notified program of subsidized fertilizers in the year 1402 AH is 2,900,000 tons, which includes 2,100,000 tons of nitrogen fertilizers, 550,000 tons of phosphate fertilizers, and 250,000 tons of potassium fertilizers. More than 90% of it has been procured and about 2.500.000 tons, which is equivalent to 86%, has been supplied to the provinces. In addition, the company currently has a suitable stock of all kinds of basic fertilizers to welcome the spring crop season.


ASSC's performance in 1401 AH

In 1401, in spite of various challenges such as cruel sanctions and financial limits, the company's performance has been acceptable. So, in total, the types of agricultural inputs, including types of subsidized fertilizers, types of modified seeds and types of pesticides, from 3.215.100 tons of the notified program amount to 3.146.883 tons, equivalent to 98.3 percent of the notified program, provided and procured.

The noteworthy point is that out of the total amount of agricultural fertilizers provided in 1401 AH, 2.318.328 tons of urea fertilizer (equivalent to 97% of the announced program) was provided despite the various problems that were in the way of the work, and as a record to Registration received.

The most important features of the agricultural inputs supply and procurement program in the Agricultural Support Services Company in 1401 AH

  1. Special attention to domestic production in the supply and procurement of agricultural inputs: One of the important features of this program is the maximum use of domestic fertilizer production capacities in the country, which fortunately, this company was able to obtain 89% of the total of nearly 320,000 tons of fertilizers supplied in the year 1401 AH from domestic producers. Provide agricultural fertilizers and after making sure that there is no internal supply capacity, import the rest equal to 11% of the total amount of supplied fertilizers using foreign sources.
  2. Diversity in the fertilizer portfolio of ASSC: Agricultural Support Services Company, in line with the policy of diversifying its fertilizer portfolio and also supporting private sector fertilizer producers, in cooperation with the Ministry of Agriculture and the country's "Soil and Water Research Institute", provides non-subsidized products of domestic private sector companies to farmers through its own large network of Brokers.
  3. Supply of agricultural inputs in accordance with the national standards: ASSC relying on expert manpower, designed hardware and software as well as quality control monitoring systems and using the quality control center of "Karaj Applied Studies Center of Agricultural inputs" and 25 provincial laboratories on the process of supply, procurement and distribution of agricultural inputs, always tries to save quality in accordance with the national standard.
  4. Collection of 97% of the approved quota (2,400,000 tons) of urea fertilizer allocated to the ASSC  in the amount of 2,318,328 tons, as well as the optimal sea and land transportation of urea fertilizer from Pardis Petrochemical Company (PPC), despite all the existing challenges, including transportation of 50% of the Urea Fertilizer quota from Asalouye, financial and credit limitations, severe problems of the transportation industry, problems caused by cutoff of feed gas of petrochemical companies (Domestic Urea producers).
  5. Significant increase in demand for basic fertilizers including nitrogen, phosphate and potash due to no significant change in their selling price to farmers in 1401 AH
  6. Transportation planning: from the amount of 3.200.000 tons of fertilizer procured in 1401 AH, about 2.402.128 tons, equivalent to 78 percent, has been transported and sent directly from the sources (ports and petrochemical companies) for ASSC's Brokers. In addition, the amount of 99.101 tons has been sold directly from organizational warehouses and no re-shipment has taken place. Also, in the year 1401 A.H, equivalent to 78 percent of its Fertilizers is directly delivered to brokers or institutional warehouses, without any re-shipment costs.
  7. Despite the many problems in the way of providing agricultural inputs and the effect of cruel sanctions on this matter, ASSC has always tried to fulfill its obligations in international payments based on the common standards in the international trade space. The confirmations of the relevant authorities in this field confirm this.
  8. With the unloading of 15.700 tons in Imam Khomeini port (BKI) and with the unloading of 13.131 tons in Bandar Abbas in one day, the record of unloading bulk chemical cargo from a ship is in the possession of the ASSC, which shows planning and order and discipline is operational.
  9. The number of 74 seed irrigation systems of the ASSC with a monthly capacity of 69,150 thousand tons is a large potential to support various national agricultural projects in the country.
  10. Using the technical knowledge capacities of reputable knowledge-based fertilizer producer companies.

National Self-sufficiency plan for agricultural fertilizers:

The issue of "National self-sufficiency plan in agricultural fertilizers" was announced as a plan and Mr. Hamid Rasouli, board member and CEO of AASC was appointed as executor by the honorable Minister of Agriculture at the time of notification. After the above notification, the first step was to form a working group with the following combination; Head of Soil and Water Research Institute, Agriculture Deputy of minister, Horticulture Deputy om minister, Head of Agricultural Fertilizer Producers Association, Head of Agricultural Fertilizer Producers unity, Head of Petrochemical Industry Association, Head of Association Producers of organic and biological fertilizers and two experts and activists in the field of agricultural fertilizers.

Based on the information collected from the amount of production, demand, consumption, import and export of all types of agricultural fertilizers and with regard to the capacities and limitations of each fertilizer group domestic production, with special emphasis and attention to "designing a "National self-sufficiency plan in agricultural fertilizers in a maximum period of five years",  the internal production of phosphate and potash fertilizers was started and the proposed Plan was approved in the presence of the honorable Minister of Agriculture on June 31, 1399 AH. The most important priorities of the approved "National self-sufficiency plan in agricultural fertilizers" are:

1- Increasing the production of phosphate fertilizers, especially simple superphosphate (SSP) fertilizer

2- Increasing the production of potash fertilizers

3- Increasing the production of ammonium sulfate fertilizer

4- Production of urea fertilizer with sulfur coating

5- Producing compound fertilizers such as ammonium nitrate sulfate

6- Promoting and increasing the consumption of organic and biological fertilizers

7- Suppling of raw materials (phosphate soil) for domestic production of phosphate fertilizers

8- Suppling of raw materials (potash soil) for domestic production of phosphate fertilizers

9- Promoting sulfur fertilizers to the agricultural sector

10- Activating phosphate and potash mines in the country to increase their soil production capacity

11- Extension of ASSC's fertilizer portfolio


In order to achieve the above priorities and by examining all the economic capacities of the country in the mining sector and the agricultural fertilizer production industry and similar industries such as the petrochemical industry and also by asking the elders of these industries' help, 30 self-sufficiency projects were planned.

From the total of these projects with a production capacity of 3.200.000 tons of agricultural fertilizers, 20 projects with a capacity of 1.270.000 tons have been put into operation and 10 large projects are left, which are mainly devoted to the development of phosphate and potash fertilizers and their production phases will started till 1405 AH.

The final perspective of the implementation and launch of the remaining projects of the "National self-sufficiency plan in agricultural fertilizers" provides the possibility for IRAN to achieve self-sufficiency in domestic consumption of agricultural fertilizers, and furthermore to be a reliable supplier in Fertilizer international markets.