Spices

Saffron: slump in exports shocks producers

April 7, 2020 12:52 PM, Der AUDITOR
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TEHRAN. The prices for saffron have declined by around 10% since the outbreak of the coronavirus in Iran. Problem is that saffron is a luxury product that is mainly exported. For the producers the current market situation could hardly be worse.

No rush to buy

The National Saffron Council of Iran states that the market is in a recession as the spread of the coronavirus has curb export and domestic demand. With the quarantine measures in place in the most important export destinations for saffron prices are expected to decline further. Since most flights have been cancelled it is basically impossible to export the spice. Saffron does not, in addition, count as an essential item for the household basket, there is no rush to buy the spice in the domestic market.

Further declines expected

These are, however, not the only problems the market is confronted with. Official data illustrates that exports had already declined before the coronavirus started to spread. Between 21st March 2019 and 20th January, exports ranged 3-4% lower than in the year before. Problems are currency issues and the NIMA system. The decline in exports is expected to continue for at least another month. Traders report drastic declines in exports over the last two months and the producers are in a state of shock. Ramadan would normally drive up the demand and prices for saffron at this time of year. Instead, the spread of the coronavirus has prevented prices from rising and prices have remained firm over the last two weeks.

 

Saffron, premium quality, Iran

Type

EUR/kg

Bunch, Dasteh

408

Poushal

484

All Red Sargol

522

Negin

631

FOB Iran

 

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