A total of $113 million worth of apparel were exported from Iran in the last Iranian year (March 2021-22), registering a 61.4% rise compared with the year before when the figure was close to $70 million, according to the deputy head of the board of directors of Iran Apparel and Textile Production and Exports Union.
“Our main export destinations were Iraq, Afghanistan, the littoral states of Persian Gulf as well as Central Asian countries,” Majid Nami was also quoted as saying by IRNA.
Referring to sanctions as an obstacle to Iranian exporters achieving their competitive edge, the official said, “The strict sanctions imposed on us makes imports of raw materials, production lines and the required machinery very difficult and expensive. This is why we have not been able to boost the quality and volume of our apparel and lower the end prices.”
Nami noted that smuggling harms competition in the local market.
Smuggled products make up around $2 billion or 25% of Iran’s annual apparel market, according to the secretary of Textile and Apparel Producers and Exporters Union.
“At present, Iran’s apparel market is worth $8 billion. The figure shows a decline compared with fiscal 2017-18 when the market size was more than $12 billion. The main reasons are the Covid-19 pandemic that has influenced the global clothing market, in addition to the depreciation of rial against the dollar,” Saeed Jalali Qadiri was also quoted as saying by the news portal of Tehran Chamber of Commerce, Industries, Mines and Agriculture.
The official noted that per capita apparel consumption has dropped from $150 to $100 over the period under review.
“Presently, the lion’s share of apparel smuggled into Iran are off-season brands sold at discounted prices that happen to be even lower than the production cost and that of the raw materials combined with price tags no one can compete with," he added.
Qadiri called on officials to take urgent measures to combat contraband apparel and lend support to domestic manufacturers.
