A total of $64 million worth of handmade carpets were exported from Iran in the fiscal 2021-22, registering a 10% decline compared with the year before, according to the head of Iran National Carpet Center.
The decline in exports had three main reasons, Farahnaz Rafe’ also told IRNA.
“The first is the fact that exporters are obliged by the Central Bank to repatriate their foreign currency earnings from exports and sell them at lower rates than market prices to the bank, which effectively discourages traders to embark on exports under the circumstances,” she said.
“The second reason is the Covid-19 pandemic and the third is economic sanctions that further complicate trade.”
Rafe’ noted that hand-woven carpet production rose by 27% over the same period under review to stand at 2.8 million square meters.
The Islamic Republic of Iran Customs Administration’s data show handmade carpet exports reached its peak in the fiscal 1993-94 with $2 billion. The exports fell to $240 million in the fiscal 2018-19 and declined further to $70 million after sanctions in the fiscal 2019-20.
“Exports of hand-woven carpets have been on a constant decline except for the early years after the Islamic Revolution, which is indicative of the fact that the policies employed by subsequent governments regarding the carpet industry have been the same,” Razi Haji-Aqamiri, a member of Tehran Chamber of Commerce, Industries, Mines and Agriculture, was recently quoted as saying.
“Such a neglectful approach is not restricted to carpet; it is evident in other non-oil products as well, with the exception of some consumer items, thanks to foreign demand. All in all, the country’s conditions, approaches employed by the government and restrictions imposed by sanctions are not desirable for exports.”
The official pointed out that old, traditional markets of Persian carpets have all but disappeared, stressing that carpet is a cultural product that needs long-term marketing.
“You can’t replace markets such as those of the US and Europe with China and Malaysia over four, five or even 10 years. Persian carpets have been in the US and Europe for over 200 years. Furthermore, marketing for Persian carpet requires great investment to pay off and these expenses are beyond the means of the private sector,” he said.
“The government should seek to create markets via long-term advertising plan and strategy. The revival of lost markets is virtually impossible and the government doesn’t seem to be motivated enough to spend at the present juncture.”
Haji-Aqamiri said none of our governments has stuck to plans and laws for long, which is a deadly virus for the economy and exports in particular.
“At present, a handful of producers are in the business of making high-priced carpets; they are making sales to some extent but generally there are no carpet exports. Export of Persian carpet is dead,” he declared.
Elaborating on the collapse of carpet trading in the international markets, Haji-Aqamiri said, “The standing of carpet has shifted in the global markets. These changes have harmed Persian carpet more than those of other countries. Today, interior designers are less inclined to recommend decorating areas with hand-knotted rugs. Carpet flooring is not as popular now as it was in the past. But it is important to account for a big share of this small market. Imagine that the total value of hand-woven carpet market is $3 billion; it is a huge difference between accounting for $2 billion of this market or $200 million. It is up to us to grab a higher share and not to hand over the market to rivals like Turkey, India and Pakistan.”
Haji-Aqamiri concluded that sanctions have weakened the position of Persian carpet in the global markets and “customers have forgotten about us due to our absence in the market”.
