The stock of saffron merchandise boosts the retail business
Hossein Sherzad, chairman of the board of directors of the country’s rural cooperatives in Iran, said: “The organizational structure of the saffron market in Iran is based on retail, so long-standing features such as lack of transparency of prices, falling prices at harvest time, the presence of non-standard and unsafe saffron with an unspecified brand, Unclear, the discovery of an unfair price has existed in this market.
The chairman of the Board of the Rural Cooperative Organization continued: In this direction, the value added of the saffron deal in the traditional market also came to individuals and collectives who bought the product in bulk from the farmers. Meanwhile, Iran’s traditional saffron market was a non-competitive but growing market with high price volatility, with no leading industries, and it was commonplace among the active traders in the destructive competition.
Referring to the fact that in the past, paying attention to customer demands in this market, the local Arabs did not mention that the drying and processing technology of saffron was not developed and developed. On the other hand, in 95% of the cultivated areas of Saffron, the harvest is carried out manually and uncontrollably, and micro-producers and saffron producers in Iran have not yet been able to properly reap the benefits of selling their products at fair and fair prices, due to the presence of diverse layers of intermediaries. Determine the export price of saffron, but all of this is due to the fact that the entry of saffron into the stock exchange witnesses the strengthening of small saffron producers and their interests.
Assist the Commodity Exchange to the National Standard of Saffron
“We need to register companies in the target export markets, and we need to impose a national standard that the commodity exchange has done in the area of product standardization,” he said, stating that the presence of the stock exchange could address the challenges and challenges of the traditional market. With the development and enhancement of contracts for the negotiation of a saffron deal, we can help farmers. Because in this contract, the farmer can sell a certain amount of saffron at a given price at a given time (withdrawal). This option can be used or not. It can also be bought in the secondary market on the stock exchange before the harvest date.
According to Sherzad, modernizing the market for saffron is an inevitable way for all those who are keen to develop and promote this industry.
59 companies active in saffron without a position in the global market
The head of the board of directors of the country’s rural cooperatives said: “The supply and sale of Iranian saffron in the world markets has been facing a lot of problems due to the fact that our main export is in the form of saffron. Due to the lack of chain integration (production, supply, processing , Export) and export of flax, about 59 Iranian saffron companies have never been able to stabilize their position in pricing in the global market.
Recently, the central rural cooperative organization has tried to target the value chain of saffron, including farmers, saffron buyers, domestic and foreign processing companies, product buyers, domestic and foreign wholesalers, and a number of organizations including the union Exporters, retailers, and exporters of medicinal herbs together.
According to Sherzad, along with the production ring, the market loop, and the ring of conversion, completion and processing of saffron, in the country, we also need to establish a circle of research and development and continuous education.
Safe market for the benefit of the manufacturer
The deputy minister of agricultural Jihad emphasized: since 1996 the Iranian Stock Exchange has been improving the value chain, managing the supply and demand of this product in the country, along with physical supply, certificates of deposit of goods for saffron and financial instruments, including futures and options for covering The risk of saffron growers, through the use of these trading methods and financial instruments, can increase the depth and number of players in this market, saffron is in line with the accepted standards accepted by the global markets.
Shirzad also said that the supply of saffron in the exportation hall of the Commodity Exchange could represent Iran as the reference price of saffron in the world market and give more depth to the domestic market. In other words, the supply of saffron in the stock can be effective in globalizing saffron with the Iranian brand and linking us to the global markets.
The deputy minister of agricultural Jihad emphasized: At the moment of the stock exchange, saffron is currently traded on the basis of the supply and demand mechanism and the real price discovery. By using modern financial instruments, the field of competition and market regulation, the possibility of Providing instant monitoring and finally managing the price of saffron. In this situation it can be ensured that the actual profit of the production reaches the producer.
He also pointed to the supply of saffron in the form of a commodity deposit and said: since the year 96 commodity policies have been based on the fact that with a small increase in the number of warehouses for storing products, small farmers can also put their products in warehouses and saffron in the market Based on competition. In this regard, the Central Rural Cooperative Organization has also accepted the development of certificates of merchandise certificates and the increase in the number of warehouses.
Quality analysis of saffron
He acknowledged that in this trading method, the farmer will deliver the product to the warehouse admitted to the stock exchange. After delivery, the farmer’s information is recorded in the information system and is issued to farmers for the code of the voyage. At the time of delivery to the warehouse, quantitative and qualitative evaluation of the product is considered. In this regard, the product is sent to the laboratory to be evaluated based on the analysis sheet and the specifications specified for standard saffron.
The official added: “The analysis of saffron has been carried out in collaboration with the stock exchange, the National Council, the rural cooperative and the standard organization, and this specification has been accepted by consensus of all these institutions, which has been defined in the stock exchange by taking into account the standards and consensus of experts in this field. Is.
Shirzad continued: In this regard, the sample of the farmer’s product is sent to the laboratory approved by the stock exchange and, if it is consistent with the specifications, the product presented, is accepted by the warehouse. Finally, the buyer will receive the product at the time of expiration with the specified specification.
Increase liquidity by developing certificates of deposit
He underscored that with the help of the development of certificates of deposit of goods for saffron, the liquidity of this product will increase for farmers, and farmers will be able to use the bills as a backbone for their required bank facilities by presenting their products to stock exchanges and receiving their bills, To sell.
Shirzad added: “With the small increase in the number of product storage cabinets, small farmers can also sell their products to the warehouses and sell saffron in the competition-based market. Hence, the opinion of the Central Rural Cooperative Organization is more toward the development of certificates of deposit for goods based on the acceptance of warehouses, in which two warehouses in Torbat and Mashhad have been accepted on the stock exchange and this year it is possible to accept more warehouses.
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