Supportive purchase of saffron has a negative impact on the market
Ali Hosseini regarding the action of the Rural Cooperative Organization to buy saffron support from farmers, said: Although this action temporarily prevented the reduction of saffron prices, but the results in the long run can have a negative impact on the domestic and foreign markets.
He continued: The statistics of the Rural Cooperative Organization show that this organization has stored 72 tons and 117 kilograms of saffron from farmers and purchased it in its warehouses.
Hosseini announced the number of farmers who have delivered their saffron to the organization as 1,036.
Emphasizing that many farmers have regretted delivering their saffron to the organization, he added: Delays in the payment of claims have put farmers in economic difficulties, and many of them have repeatedly stated that they would prefer to sell their produce at a lower price. Sell, but receive the price of their suffering in cash.
According to Hosseini; Since November, when the first supportive purchase of saffron was made, until today, the Rural Cooperative Organization has settled only 3,136 billion rials, equivalent to 46% of the demands of saffron growers in the provinces of South and North Khorasan.
He expressed his concern about the future of the saffron market in light of the current situation, saying: Experts are concerned about the shock of the supply of stored saffron from the rural cooperative to the market.
Hosseini added: Experts believe that the supply of a significant amount of saffron that the Rural Cooperative Organization has stored in its warehouses in the current market conditions, could be to the detriment of the country’s production.
He reminded: Due to the situation that has arisen following the outbreak of the corona virus, the export routes of many countries have been closed to us and the export of saffron, like many other goods, is slow.
Hosseini said that one of the reasons for the country’s great problems in exports is its unpreparedness to face the crisis and said: We are never ready for a time of crisis. This will cause us to always suffer heavy losses in the face of it.
He continued: It does not matter how and where the crisis is, from floods to diseases, our markets, especially the market of agricultural products, are always affected and cause severe fluctuations in the domestic and foreign markets.
Hosseini described the establishment of export anchoras abroad as a solution to the crisis.
A member of the National Saffron Council said: It is necessary to create anchorages on 5 continents of the world so that we do not lose the market and suffer serious losses when we are unable to leave the country due to the crisis.
Hosseini considered the supportive purchase of saffron and any agricultural product by the government as a temporary solution, the long-term consequences of which are negative on production and the market.
Get Social