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Saffron: demand fails to revive

June 2, 2020 11:39 AM, Der AUDITOR
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TEHRAN. The coronavirus crisis has prompted a slump in the saffron market. Problem is that overseas demand has failed to revive in Europe, Asia and in the Middle East and in the Persian Gulf. Market players in Iran reckon that the situation will get worse.

Large carry-over supplies expected

The closure of borders has disrupted exports and overseas demand is far from normal meaning that shipments have declined to a new low. Economic problems have also prompted a decline in domestic consumption and prices have been on the decline over the last four weeks. Market players currently estimates that this season’s carry-overs will range at 120-140 metric tonnes. To make matters worse, this year’s production may rise by around 15% and reach 575 metric tonnes. This would bring total supplies for 2020/2021 to 700 metric tonnes. Consumption and exports need to be promoted to provide producers with an incentive to collect saffron flowers in the fields as traders in Iran are optimistic that demand will return to normal in Europe, the Middle East and in the Persian Gulf.

Drastic decline in prices

The high inventories in the warehouses coupled with the failure of demand to revive in the export market and the economic problems within Iran have prompted a drastic decline in prices over the last four weeks. Poushal saffron is, most notably, trading EUR 19 per kg lower at EUR 471.00 per kg FOB. However, the price decline for Sargol saffron is more moderate as prices have declined by EUR 6.00 per kg to EUR 510 per kg FOB.

 

Saffron, premium quality, Iran

Type

EUR/kg

Bunch, Dasteh

419

Poushal

471

All Red Sargol

510

Negin

628

FOB Iran

 

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price chart, saffron, dried, Negin, Iran
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