BMI View: Over the longer term, we believe that continued investment by the government to improve infrastructure - such as the improvement of irrigation systems - will help the country turn away from its backward agrarian system and will yield results in terms of better-quality grains. We are especially upbeat in our outlook for grains and sugar production. Recent financial sanctions designed to pressure Tehran over its nuclear programme played havoc with Iran's ability to import goods, making food price inflation soar. The election of President Hassan Rouhani, a more moderate leader than his predecessor Mahmoud Ahmadinejad, has seen the country adopt a more conciliatory stance with the West, with many sanctions being eased or removed.
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