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Saffron: exporters lose out big time

July 13, 2020 10:06 AM, Der AUDITOR
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TEHRAN. Average export prices for saffron have slumped over the last nine years. While average export prices for Bunch saffron ranged at USD 4,000-5,000 per kg in 2009-2011, they have now depleted to as little as USD 400-500 per kg. Average retail prices have, by contrast retained the high level of USD 5,000-7,000 per kg. Traders in Iran concede that exporters are losing out heavily.

International brokers profit from inability

While overseas buyers were wiling to pay as much as USD 6,000 per kg for saffron around eight years ago, they now only pay USD 400 per kg. These internationally operating buyers and brokers then resell saffron at a price of USD 7,000 per kg or higher in the global market meaning that they earn around USD 6,600 per kg. Their advantage is that this group mainly comprises Iranians living abroad, who purchase saffron from the exporters in rial.

Considering that Iran accounts for more than 90% of global production it should, in theory, not be a problem for the export market to enforce a rise in price. Practically speaking, better organisation and coordination are, however, required. Joint export consortiums need to be formed and companies that can sign contracts with international chain stores or brands in the retails markets by using their own brands need to be supported. Market players are also voicing calls for a higher foreign exchange commitment ceiling of USD 3,000 per kg for saffron. All these measures, however, require time.

Prices fluctuate

Prices have fluctuated over the last two weeks. Although the Iranian rial lost in value against other currencies, domestic demand has most notably driven up the prices for Negin saffron by EUR 0.26 per kg to EUR 614 per kg. Poushal saffron is trading nominally higher. The prices for all red Sargol and Bunch saffron have remained relatively stable.

Saffron, premium quality, Iran

Type

EUR/kg*

Bunch, Dasteh

389

Poushal

456

All Red Sargol

485

Negin

614

FOB Iran

*Please note that the prices indicated her apply to an order volume of 10 kg. Suppliers may offer lower prices for higher volumes.

 

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price chart, saffron, dried, Negin, Iran
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