The role of foreigners in determining the price of Iranian saffron
Ali Moradi Bejou, a specialist responsible for the cultivation, production and processing of medicinal herbs at the Ministry of Agricultural Jihad, told about the process of discovering the price of saffron in domestic and export markets to ISNA: There is no specific mechanism for the discovery of saffron prices in this traditional market, and in fact merchants and the exporter They set the farmers’ purchase price and farmers and small business owners do not have much in the way. The global price of saffron is not a special rule, and it may be said that international intermediaries play a key role in determining it.
The role of a number of countries in determining the world price
Moradi Bejou added: Saffron is exported from Iran to the Gulf states, Spain and part to Afghanistan, and these countries have a share in pricing. Otherwise, Iranian exporters are not much involved, but buyers and sellers of saffron in other countries will determine the price of saffron from Iranian merchants. Of course, it is interesting to note that saffron is traded in these countries.
According to him, the export price of saffron is about $ 1 per gram, and recently its price was about $ 1,000 per kilo.
We should be the global price reference
According to the expert at the Ministry of Jihad Agriculture, given that more than 90% of the total production of saffron in the world is produced by Iranian farmers, we need to have the world’s precious price reference. But the realization is necessary because the market for saffron is traditional, and a trader who has worked and successfully succeeded for many years will not be able to express his success. If we take this assumption right, it is inevitable that we should get help from the exporters and businessmen who are active in this area.
“Given the local stock exchange for transparency and real price discovery, if we use the experience of saffron exporters, we can definitely achieve Iran’s pricing at world markets,” he continued.
The need to maintain a successful plan
He said about the benefits of using the stock exchange mechanism to deliver a strategic product like saffron based on the successful experience of implementing a saffron agreement on this market and satisfying farmers. Since our saffron production is traditional and 75 percent of the cultivated area is saffron In areas under one hectare, four hectares of saffron are harvested per hectare. Therefore, the amount of saffron produced by major saffron producers includes a small amount of total production.
Possibility to maximize farmers’ profit
Moradi Bejou continued, “But in the stock exchange, the minimum production saffron for each farmer is 1,000 grams, which will cause some farmers not to enter the stock exchange. In addition, many farmers are not familiar with how to use the internet and the legal procedures necessary to enter the exchange. In this regard, there is a necessary intermediary between the stock exchange and the farmer, which can be cooperatives formed by a group of farmers. Hence, with intermediary institutions, the transaction process is easy to do, in which case benefits such as transparency of transactions and fair price discovery will be achieved by maximizing farmers’ profit.
He also pointed out the plan for buying saffron and stated: “Implementing the agreement for the purchase of saffron, although it had weak points in its first experience, was able to satisfy the farmers and, given the need to comply with certain standards, to increase the quality of the purchased product Led to In addition, this scheme prevented the occurrence of fraud and misuse. Of course, in the coming years, the implementation of this plan could also eliminate the weaknesses by engaging all stakeholders in the Saffron field. Because these groups have definitely got to say something to improve this plan.
Set up upcoming deals using the global multi-year experience
He said the Futures and Futures Market is a tool for launching futures for saffron on commodity exchanges and its benefits for predicting prices and addressing concerns of saffroners for future product prices in other markets and ensuring their sales. There are many experiences in the world to use. In order to use this tool for saffron, extensive information should be provided.
He explained why a farmer should sell his product at a lower cost to a broker, as a matter of course, that there would certainly be no need for it to be needed by the local The name of the stock exchange will not be resolved, speculators will also be present in the markets. The geography of saffron growers is very large, there must be an advantage for brokers that farmers can sell their products on the stock. So it’s best to use their potential with the right orientation.
Moradi Baghdo emphasized: Overall, the supply of saffron on the stock exchange is a positive step that we are proposing in the Ministry of Jihad-e-Agriculture to make the media widely known about it, because with the familiarity of farmers and the development of infrastructure, the advantages can be The stock exchange has been used to support Iran’s production and goods.
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