Iranian Saffron: Increasing the Price and Declining the Export Due to the Production Reduction

The production of saffron in Iran has dropped compared to last year. The export of Iranian saffron has decreased by about 60 percent in January due to the production reduction. The price of saffron has increased by about 200 to 300 percent compared to the same period last year.

Drought has reduced saffron production in Iran. This issue increases its price significantly. Some foreign buyers thought that the rise in prices was a way for overcharging. This price increase was not acceptable to them.

Drought and production reduction have severely affected the saffron market. The price of Iranian saffron has increased by nearly 200 to 300 percent in domestic and global markets compared to the same period last year. It was difficult for foreign customers to accept such a price increase. When the export customers realized the price increase, global markets also confirmed the dramatic reduction of saffron production. Finally, this price increase reduced the export of saffron. The amount of saffron export was 15.562 kg, worth 7.564.000 USD in the past month (January 2022). The export rate has dropped significantly in January this year compared to the same period last year. In January 2021, 36.701 kg of saffron worth 18.422.000 USD was exported from Iran. Saffron exports have dropped by about 60 percent in January 2022 compared to the same time last year.

Saffron exports continue. Although some agricultural and industrial goods are exported to world markets without the insertion of Iran’s brand, saffron should be exported to international markets with the certificate of origin and insertion of Iran’s name. This product is exported to sixty-seven countries. This year, 1.000 tons of packaging have been created for saffron production in Iran to reach the final consumer in European countries. Iranian factories packed saffron based on customer taste. Some countries use saffron as a medicine, and others use this crop as cosmetics and food. Although saffron is one of the few industries that remained stable in sanctions and its packaging does not change in other countries, smuggling the saffron corm to Arab countries has recently been noticed. Some market participants say the cause of reducing export and production of saffron is also smuggling of its corm to neighboring countries.

As mentioned, the demand for saffron has been heavily reduced in global markets due to the sharp rise in the price of this crop. This issue resulted in a decline in the price of this product compared to last month. Foreign exchange rates have dropped against Rial over the past two weeks. Therefore, the product’s price has increased in global markets in these two weeks, despite the decline in prices in domestic markets.

For more information, facts and figures,
become a member. Click here.

Related posts:

Saffron; What Is the Reason for the Decrease in Iranian Saffron Exports in the First Two Months of 2022? Iranian Saffron prices upward trend stopped Iran Saffron: Harvest has decreased due to drought in Khorasan Razavi Saffron: Evaluation of Iranian saffron exports in the last six months Difficulties in exporting Iranian saffron Iranian saffron is suffering from global isolation Black pepper India: Export rise in 2021? Mix trend in chilli market