Rumors Cause Saffron Prices to Spike
Economy, Domestic Economy

Rumors Cause Saffron Prices to Spike

Recently the price of saffron skyrocketed by about 20 million rials ($600) per kg to reach 70 million rials. The primary reason behind this price hike does not seem to have been lack of supply or high demand, but rumors spread by insider traders, Eghtesad News reported.  
Gholamreza Miri, head of the Exporters Association of Iranian Saffron, pointed out that over the past 40 days, 500,000 rials (16$) were added daily to the price of saffron.
Astonished by this volatility in an otherwise mature market, Ali Hosseini, a member of the EAIS, said, “Unfortunately some opportunists are looking to make huge profits by disturbing the market and spreading false news that the supply of saffron is limited.”
Hosseini claimed that currently Iran’s supply of saffron is higher than domestic needs and exports combined.
 “In [the Iranian year] 1392 (ended March 2014) about 300 tons, and in 1393 about 200 tons of saffron were produced in the country,” he said adding that in 2014 only about 140 tons were exported. “We had saffron in excess of both consumption and export demand.”
He said saffron exporters are still exporting last year’s crop.
“We expect this year’s harvest to bring annual production to 300 tons,” he added.
Ruling out rumors about shortage of saffron in the country, he went on to say, “These figures indicate that saffron production in Iran is high.”
So far, it is unclear what individuals or companies have been behind this insider rally. The government is expected to start reviewing this adverse market activity in one of Iran’s most prestigious markets.

Short URL : http://goo.gl/l224of

You can also read ...

A delegation headed by First Vice President Eshaq Jahangiri was in Ankara on Thursday and reached several deals.
Following several rounds of negotiations between Iranian and...
Evaluating Economic Impact of Shifting Iran-KRG Relations
Iran and the Iraqi Kurdistan Regional Government have...
US Won’t Block  European Trade  With Iran
US Secretary of State Rex Tillerson said the Trump...
All SP Gas Field Phases to Be in Full Swing by March 2019
The South Pars mega project has registered a work-in-progress...
Russia Grain Exports to Iran Reach 220K Tons
Over the first nine months of 2017, exports of Russian wheat,...
Armenia Export Growth in Iran Tops 11%
Armenia has recorded an unprecedented growth in exports to...
Iran’s Red Meat Output Meets 90% of Demand
A glance at Iran’s meat packing industry shows red meat...
Multilateral Push to Revive Housing Leasing
A special multilateral task group is amending regulations to...