Speaking to ILNA, Ali Hosseini said that currently 90% of the total saffron in the world is produced in Iran but the country is unable to sell its saffron based on own price. He then pointed to the lack of infrastructure in production, distribution and trade of saffron in the country, noting that everybody expects any domestic product to surge in exports but it is better to take infrastructural measures than accusing others or ordering others because we need infrastructural measures to protect the position of the domestic saffron in the international market.

Hosseini blamed drought for the decline in production this year, adding that this year saffron production has slumped by 70% comparing to the same period last year.

He said for 30 years Iran has been the top saffron producers in the world but it has not taken any practical action in saffron processing industries.

He added that in the first 9 months this year, Iran’s saffron exports have declined by 60% comparing to the same period last year and all should work to find the reason and to improve it.

Hosseini went on to say that due to multiple rise in the price of saffron, foreign purchasers do not have any appetite to buy saffron, adding that Iranians want to sell their saffron based on their own price while foreigners want to buy it based on the logical price for offering it in the international market.

He admitted that Iran’s neighboring countries are trying to overtake Iran’s position in the international saffron market. He said 30 years ago Spain was the world number one saffron producer  but Iranians could take over the place of Spain though producing high quality saffron with lower prices but the history may repeat and Spain tops the world ranking if Iran does not offer good quality saffron with logical price.

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According to Ruhollah Latifi, over 78 percent of the mentioned exports in terms of value were made to five major customers of the Iranian saffron, IRNA reported.

Hong Kong with 74,578 kilograms (kg) worth $46.626 million of imports, the United Arab Emirates with 59,791 kg valued at $33.942 million, Spain with 49,025 kg worth $26.44 million, China with 40,139 kg and a value of $22.504 million, and Afghanistan with 33,781 kg and a value of $19.168 million were Iran’s top saffron buyers in the mentioned period.

According to Latifi, the mentioned five countries accounted for 79 percent of the Islamic republic’s total saffron exports in terms of weight.

Iran is one of the world’s top saffron producers and over 90 percent of its production is exported to foreign destinations.

The country exported 192 tons of saffron worth $117.5 million to foreign destinations during the first eight months of the previous Iranian calendar year (March 20-November 20, 2020).

Hong Kong, Spain, UAE, China, and Afghanistan were also the country’s top saffron importers in the mentioned eight months.

Based on a multilateral memorandum of understanding (MOU) signed between Iran’s Planning and Budget Organization (PBO) and three of the country’s banks in early October 2020, 10 trillion rials (about $238.09 million) was allocated for supporting the saffron industry.

The MOU was signed by PBO’s Deputy Head Hamid Pour-Mohammadi and the managing directors of Agriculture Bank, Mellat Bank, and Export Development Bank of Iran.

Speaking in the signing ceremony, Pour-Mohammadi noted that the mentioned funding would be provided to saffron producers and processors in the form of bank facilities to support the production of saffron and the packing and processing of this product which has been impacted by the outbreak of coronavirus.

According to the official, the interest rate of the mentioned facilities would be 18 percent, of which PBO has agreed to pay three percent.

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So far, about 25 Saffron farmers cooperatives in 6 provinces of the country have been established as an agricultural organization.

“The most important role these organizations can play in empowering saffron farmers is to follow the demands of farmers from the public sector and other sectors. And in dealing with other economic sectors of the country, they can address the problems, obstacles, and challenges facing saffron farmers,” Shirzad, who is also the chairman and CEO of the Central Organization of Rural Cooperatives  (CORC) of Iran, said.

“To that end and in order to defend the rights and interests of saffron producers, supporting the supply and production chain and the value of the saffron industry is essential to establish a national union,” Shirzad noted, adding, “The organization can be especially effective in marketing, balancing and regulating the saffron market.”

The Union of Saffron farmers Co-operatives is an organization with an economic and social approach that can, within the framework of its laws and regulations, regulate saffron farmers’ cooperatives to achieve their legitimate interests in accordance with the principles of cooperative law. Approved by the year 1971, he added.

Also, Shirzad continued, the Union can collaborate and interact with government and non-governmental sectors such as training and transferring the up to date scientific information to saffron farmers, pursuing easy access of farmers to agricultural inputs, striving for better marketing of saffron crops. , liaising with the government and influencing saffron policymaking and ultimately Strengthening the economic and welfare vigor of saffron farmers.

He pointed to the experiences of other national unions in the field of agriculture and the countryside and added that the National Union of Saffron Farmers’ Co-operatives in Saffron Marketing certainly has a higher degree of interaction and coordination and bargaining power than individual Saffron farmers and Even co-operatives.

And it can help saffron growers to sell their products at a more suitable price, he underlined.

Shirzad highlighted the Rural Cooperative Organization move to make non-guaranteed purchase of saffron from farmers that eliminates dealers and intermediaries from the saffron market and said: In general, the purpose of the Rural Cooperative in non-guaranteed purchase of agricultural products is to balance, regulate the market and prevent severe fluctuations in agricultural prices and its gradual supply.

In conclusion, Shirzad said the National Union and Saffron Co-operative Companies can contribute to balancing and regulating the saffron market with Rural Cooperative Organization and can apply saffron farming policies and Technical issues, production and operation of this strategic product play an important role in specialized departments, including the Department of Horticulture.

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TEHRAN (Iran News) – Iran has adopted special measures to extend support for its saffron farmers, according to Deputy Minister of Agricultural Jihad Hossein Shirzad said.

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The delicate purple leaves of the Crocus sativus plant hold just three or four of the even more delicate red stamen, better known as saffron, that sprouts for just 10 days a year.

These tiny filaments are currently selling in local markets for 90 million rials per kilo — about $700 on Iran´s volatile exchanges — and perhaps four times higher abroad.

The government says more than 90 percent of the world´s saffron grows from the hard soil in Khorasan province of northeastern Iran.

Hossein Zeinali, the director for the ministry’s plan of medical herbs, said the product has been exported to 40 countries and Spain, Vietnam, Qatar and United Arab Emirates were the major export destinations, IRNA reported.

Earlier this year, Iran exported 40 tons of saffron during the first three months of the current Iranian year (March 21-June 21) to witness a decline of 15% compared with last year’s corresponding period.

According to Ali Hosseini, a member of Iran’s National Saffron Council, the price of Iranian saffron on global market currently stands at €700-1,000 per kilogram, ILNA reported.

The price range indicates that Iran’s saffron exports were worth €28-40 million in Q1.

Iran is the world’s biggest producer of saffron and accounts for more than 90% of global production.

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Some 206,000 hectares are under medicinal plant cultivation in Iran, producing 675,000 tons annually, he said, adding that the area for cultivation such products will increase to 280,000 hectares by fiscal 2021-22.

Iran is home to about 8,500 species of medicinal herbs.

The official added that the move will help boost domestic income and job creation in different parts of the country.

Iran is the world’s biggest producer of saffron and accounts for more than 90% of global production. The country produces an average of 370 tons of saffron on over 108,000 hectares of land annually.

The country is also the world’s number one producer of Damask rose. According to Zeinali, Iran supplies 90% of rosewater in global markets and accounts for 8-10% of rose essence production in the world.

World caraway production is also dominated by Iran. People use caraway oil, fruit, and seeds as medicine.

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