A total of 192 tons of saffron worth $117 million were exported from Iran to 53 countries during the first eight months of the current Iranian year (March 20-Nov. 20), according to the spokesperson of the Islamic Republic of Iran Customs Administration.
“Some 80% and 84% of the weight and value of the total exports went to five countries. These were Hong Kong with 53.15 tons worth $33.83 million, Spain with 33.18 tons worth $21.58 million, the UAE with 31.41 tons worth $18.7 million, Afghanistan with 17.99 tons worth $11.27 million, and China with 18.59 tons worth $10.78 million,” Rouhollah Latifi was also quoted as saying by IRNA.
The official noted that Oman with $5.6 million, Kuwait with $2.7 million, Qatar with $1.9 million, Macao with $1.4 million and Taiwan with $1.2 million were Iran’s other main export destinations over the eight-month period.
Exports were also made to France, Italy, Australia, Bahrain, Sweden, the Netherlands, Belgium, the UK, Canada, Germany, India, Switzerland, Malaysia, Turkey, Iraq, Indonesia, Japan, South Africa, Austria, Poland, Norway, Kenya, Lebanon, the US, Kazakhstan, Azerbaijan and the Philippines.
According to Latifi, 115,000 hectares out of the 122,000 hectares under saffron cultivation in the world are located in Iran.
“We account for 94% of the global saffron output. Last [Iranian] year [March 2019-20], some 500 tons of the crop were harvested, 80% of which were exported.”
The official noted that this year's saffron exports have been negatively impacted by the novel coronavirus, which came to a halt following the outbreak of the virus in mid-February.
Gholamreza Miri, the deputy head of Iran's National Saffron Council, said the country resumed saffron exports in July.
“Iran’s saffron export destinations are struggling with the novel coronavirus just like we are. The international markets are in doldrums and demand for this Persian delicacy has fallen. As a result, saffron prices have dropped as well,” he said.
The official told Young Journalists Club that Iran exported 251 tons of saffron during the last fiscal year that ended on March 19, 2020, registering no significant change compared to the year before.
“We are hoping that after the pandemic is over, markets will resume business and the decline in exports experienced this year can be compensated,” he added.
The lion’s share of Iranian saffron is exported by air.
“Land under saffron cultivation has increased in Iran, as the crop is being cultivated in 23 provinces this year. Due to favorable weather and high precipitation levels, an ample harvest is on the horizon,” Miri said.
The saffron industry in Iran has created about 200,000 jobs along the pre-harvest, harvest, post-harvest, processing, sorting and packaging chain. The livelihoods of these people, farmers in particular, depend largely on exports.
Deputy Agriculture Minister Ali Tahmasebi says Iran’s area under saffron cultivation is 20 times bigger than the total land dedicated to growing saffron in the whole world, adding that Iran is annually increasing the area by 5,000 hectares.
Tahmasebi said saffron cultivation is no longer restricted to the provinces of North Khorasan, South Khorasan and Khorasan Razavi.
“Farmers now also harvest saffron in various parts of the country, including Chaharmahal-Bakhtiari Province, a cold and mountainous region in central Iran, as well as in Khuzestan, a southern province known for its hot and humid climate,” he said.
Per capita consumption of saffron in Iran stands at 1 gram. Annually, 80 tons of saffron are consumed domestically.
Bank Keshavarzi Iran (Agribank), Export Development Bank of Iran and Bank Mellat will lend loans to economic operators engaged in the production, processing and export of saffron as per the recent memorandum of understanding signed with the Plan and Budget Organization.
“The outbreak of coronavirus and sanctions have disrupted saffron exports and caused prices to plummet; loans worth 10,000 billion rials [$38 million] have been envisioned to support different sectors of saffron production, packaging and exports,” Tahmasebi said.
Hamid Pourmohammadi, a senior official with PBO, was quoted as saying by IRIB News.
Bank Mellat and Export Development Bank of Iran will offer 2,500 billion rials [$9.6] each and Bank Keshavarzi (AgriBank) will grant loans worth 5,000 billion rials [$19.23] at an interest rate of 18%.
Pourmohammadi said the Plan and Budget Organization will pay 3% of the lending rate, therefore the interest rate of these credits will decline to 15% for borrowers.
