Iranian Saffron

Iranian Saffron: The Increase in the Price of Saffron for Export

Mintec Global
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The average price of Iranian saffron for export has increased by 8.7 percent in August 2022 compared to July 2022.  It has reached 1,209 USD per kilogram from 1,112 USD per kilogram.

The decrease of 3 percent in the number of exports

According to the Iran customs statistics, 8,107 kilograms of Iranian saffron worth 9,804,947 USD were exported in August 2022. The export rate of this crop has decreased slightly in terms of weight in August 2022 compared to the past month (July 2022), but it has increased in terms of export value. 8,359 kilograms of saffron worth 9,297,439 USD were exported from Iran in July this year. The export of Iranian saffron has declined by 3 percent in terms of weight in August this year compared to July, but it has increased by 5.5 percent in terms of export value. The decrease of 3 percent in the number of exports in terms of weight is due to a slight decrease in export demand.

Two main factors increase the export value

Two main factors increase the export value of this product in August compared to July, despite the decrease in the export of this product in terms of weight. The first factor is that the price of saffron increased compared to July due to the decline in the exchange rate of foreign currencies against the Rial in August. The average price of Iranian saffron for export increased by 8.7 percent (97 USD) in August compared to July. It has reached 1.209 USD per kilogram from 1,112 USD per kilogram. The second factor is the increase in the share of Iranian packed saffron for export in August compared to July. The price of packed saffron is higher. This has caused an increase in the value of Iranian saffron for exports in August compared to July.

In terms of weight, export dropped

The export rate of Iranian saffron for export has greatly dropped in terms of weight in August 2022 compared to the same period last year. 13,291 kg of saffron were exported from Iran in August 2021, indicating that this product’s export has fallen by 39 percent in terms of weight in August this year compared to last year. The decrease in production this year, which caused a reduction in supply, is the most important reason for the decline in exports in August this year compared to last year.

Also, the sharp increase in the price of saffron this year, which was due to the decrease in the production of this product, caused a decrease in demand and the export of Iranian saffron. The average price of Iranian saffron for export in August this year (1,209 USD per kilogram) has increased by 141 percent compared to August last year (502 USD per kilogram).

The sharp increase in the price of each kilogram of exported saffron in August this year caused the export value to rise by 47 percent compared to August last year, which was 6,667,729 USD, despite the reduction in exports in terms of weight.

Why is the price falling?

Compared to last month, the price of Iranian saffron for export has fallen by 9.5 to 11 percent in the world markets. The decrease in export demand and the increase in the exchange rate of foreign currencies against the Rial are the two main reasons for the decline in the price of this product in global markets compared to last month. Over the past two weeks, the foreign exchange rates in the Iranian market have increased by 9 percent due to the halt in the nuclear negotiations between Iran, the United States, and other member countries of the 2015 Nuclear Agreement (JCPOA).

 

ProductTypeGrade $ Price€ Price
SaffronNeginPremium Grade13101310
All Red(Sargol)Premium Grade11691169
PoushalPremium Grade11451145
Bunch(Dasteh)Premium Grade869869

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