Saffron; The Domestic Market of Saffron is Thriving / Exports are Declining

The domestic market of saffron is thriving due to Ramadan and increasing saffron demand, which has raised the price of this product in the domestic market and world markets. However, the export of Iranian saffron has declined due to restrictions on imports of saffron to China.

Several factors have thrived the domestic market and increased the prices of this crop, Including the coming of many travellers to Mashhad in Khorasan Razavi Province (the largest producer of Iranian saffron) during the Nowruz holidays, Ramadan, and increased saffron consumption. The domestic market of saffron was in a good situation due to the entering of pilgrims to Mashhad. However, exports are reducing.

China is the most considerable buyer of Iranian saffron. It has reduced the purchase of this product by imposing restrictions. In the past, saffron was exported directly to Hong Kong, Vietnam, and the countries sharing land borders with China. Saffron was smuggled into China after entering the mentioned countries. But China is preventing imports of smuggled goods into its country now. China considers registry codes for merchants. Accordingly, merchants can only import goods to China with the registry code. But, it takes time to get that code.

Every month, 20 to 40 tons of Iranian saffron are exported to China. But China stopped buying this amount from Iran. Therefore, the decline in exports is due to obstacles in the Chinese market. India, Saudi Arabia, and the USA are Iranian customers and China. So, Iranian merchants must look for new customers.

Currently, the saffron that is purchased is partially processed and then exported. The actions of active companies in conversion industries make it possible to use processed saffron in the food and cosmetics industries like Germany and the United States. If Iran takes these actions, it can succeed in job creation and value-added. Also, with the activities of companies in the saffron processing sector, saffron does not need to be exported raw.

Supply and demand will determine the price of saffron. Saffron consumption has increased during Ramadan. Saffron demand has risen over the past month and during Ramadan. This issue has raised the price of Iranian saffron by about 9 to 12.5 per cent in world markets compared to last month.

Related posts:

Saffron; What Is the Reason for the Decrease in Iranian Saffron Exports in the First Two Months of 2022? Iranian Saffron: Increasing the Price and Declining the Export Due to the Production Reduction 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 Mix trend in chilli market