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Local restrictions damage Iran's carpet industry

Business Materials 12 February 2019 13:00 (UTC +04:00)

Baku, Azerbaijan, Feb. 12

By Elnur Baghishov - Trend:

Local restrictions have hit Iran's carpet industry, Abdollah Bahrami, Executive Director of Iran Hand-Woven Carpet Producers' Cooperatives Union, told Mizan News Agency, Trend reports.

According to him, Iranian carpets can be easily put on sale in the markets away from sanctions. And yet, the local sales have been damaged as well.

Highlighting that 3 million square meters of carpets are woven in Iran annually, Bahrami said that the lack of provided insurance, the rise in the prices of raw materials and other factors have led to a decline in production.

He further stated that there are 1 million carpet weavers in Iran, according to Iran's National Carpet Center, with 300,000 of them being insured and the rest having no insurance.

"Over the last few months, the price of raw materials has grown by about 300 percent. The cost of the carpet per person has decreased the income of the carpet weavers," he said.

Bahrami said that domestic restrictions have hit the carpet industry more than external sanctions.

"According to the Central Bank of Iran, if the carpets are taken out of the country, the currency from their sales should be returned to the NIMA system. This is out of the realm of possibility, since the revenue from carpet exports reach the country after a prolonged period of time," he said.

Bahrami believes that this has led to exporters being no longer interested in exporting carpets.

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