Iran’s saffron exports up 76% in H1 calendar year despite hurdles: Union chief
By Sadeq Dehqan
Staff writer
Iran’s saffron exports climbed to 76% in the first half of the calendar year (began on March 21) compared with the same period last year, reaching 97 tons, a senior industry official said.
“Saffron exports in the first six months of last year were approximately 54 tons, a figure that has reached about 97 tons this year,” said Gholamreza Miri, head of the Khorasan Razavi Saffron Exporters Union, in comments to Iran Daily.
Referring to the total amount of Iranian saffron exports last year, Miri said, “Based on Iran Customs statistics, over 214 tons of saffron worth approximately 190 million dollars were exported from the country last year, and naturally, if the upward trend of saffron exports continues this year, the total saffron exports of the country will see significant growth compared to last year.”
The union chief stressed that, “There are obstacles to exports, if removed, the amount of saffron exports from the country would exceed current predictions.”
Pointing to the obstacles to saffron exports, Miri said one of the obstacles is that Iranian exporters are unable to open LCs or obtain guarantees, and are forced to export saffron with high risk because if the saffron does not reach the buyer, the exporter has no guarantee beyond the borders.
The official ascribed the growth in exports to the export of saffron at low prices to secure the foreign currency needed for imports.
“Some countries are direct consumers of our exported saffron, while others purchase saffron from us in bulk (e.g., 500-gram packages), perform retail packaging in their own country, and then re-export it to other countries.”
Touching on Iran's share of the global saffron market, Miri said, “A common mistake is that some statistics are misinterpreted; for example, it is said that saffron is used in cosmetic and pharmaceutical industries, and thus the total sales of those products are registered under saffron. Based on this, the financial turnover of saffron worldwide has been estimated at 8 billion dollars, which is not a logical figure.”
The union chief referred to Iran's competitors in the global market and said, “Currently, 90% of the world's saffron production is in Iran's hands; therefore, we do not have serious foreign competitors in this field. Our competition is actually with ourselves and within the country, and we do not have any competitors abroad; if I want to put it more clearly, our competitors within the country are those who create obstacles for exports.”
Highlighting the capacity to buy Iranian saffron in the global market, Miri said, “Assuming we produce even a thousand tons of saffron per year, if export barriers are removed, there is global demand for Iranian saffron, and we are able to sell all the saffron produced in the country in the global market. Then, considering the price of each kilogram of saffron between 1200 and 1500 dollars, a very high figure in terms of foreign exchange earnings, job creation, and added value will be generated for the country.”