TEHRAN, Iran, June 17
Trend:
Iran's saffron export and domestic consumption has declined in first three months of current Iranian year (started March 20, 2020) due to coronavirus spread, Head of Iran Saffron Union Gholamreza Miri told Trend.
"Each year, saffron production take place from September 23 to November 22. The Agriculture Ministry statistics show that 500 tons of saffron have been produced in last Iranian year [started March 21, 2019]," Miri said.
"About 20 percent of production is usually consumed domestically and 80 percent is targeted for export, While Iran exported saffron in February, the European countries released the saffron from their storehouses three months later due to coronavirus spread," the head of union added.
"Currently, we are in recession, and saffron price has dropped eight percent comparing to the price that was set by the Central Organization Rural Cooperatives on March 12, 2020," Miri noted.
"I have suggested to the minister that the government should avoid selling 74 tons of saffron on stock exchange to compensate the money it has paid to farmers; supplying this volume of saffron will cause further drop of price, since the demand is little at the moment, and it will cause losses to exporters," he said. "It is possible that the saffron will be purchased at the exchange at low price but exporting the products will bring little profit; thus, it's better to store the saffron until demands increase."
He went on to say that the Agriculture Ministry wanted to increase the price of saffron from 80 million rials (about $1,900) to 160 million rials (about $3,800) per kg by supplying 74 tons to the market via stock exchanged.
"It is certain that saffron is sold with high risk and exporter's profit will not be more than 5 percent since saffron market in the world is small. Moreover, saffron is being smuggled with lower price due to export problems," he added. "Many saffron importers have not paid the money to exporters yet since they have seen the price of saffron has declined in Iran."
"In the first four months of current Iranian year, total of 50 tons of saffron has been exported but the exporters have not received their payment from customers yet, and the price decline will affect both the farmers and exporters," Miri said.
"Iran Saffron Union has suggested providing a budget for the purchase of saffron from farmers since they have not received money in past seven months," he said.
"The government plan is to sell 74 tons of saffron at the price from 65 million rials [about $1,500] to 92 million rials [about $2,100] per kg via the stock exchange; however, the prices are not adequate and the exporters would not be able to return foreign currency revenue to the country," he added.