Why does the price of saffron go up and down?

Why does the price of saffron go up and down?

The head of the Khorasan Razavi Saffron Exporters’ Union said: Lack of liquidity sometimes reduces the price of saffron by 150 to 200 thousand tomans per kilogram, and this price fluctuation is the biggest problem that does not allow exporters to operate properly.

Gholamreza Miri stated: Insufficient liquidity for exporters will reduce the price of saffron, but it is possible that after 10 days when the money from exports will return and the liquidity will increase, the price of saffron will also increase.

Despite price fluctuations, exporters cannot have long-term contracts because price credits are for at least a week, and on this account they cannot compete with foreign sellers, he said.

Miri added: Exports of this product have increased by 35% in the first four months of this year, and we need global marketing to continue this trend. In the first four months of this year, 43 tons of saffron worth $ 61 million were exported from Khorasan Razavi province to other countries.

He pointed out: In saffron exports in the first four months of this year compared to the same period last year, we have grown by 35% in weight and 32% in value.

Referring to export duties in the past as one of the deterrents to saffron exports, Miri said: The existence of duties would cause saffron to be smuggled out of the country, but now that these duties and barriers have been removed, we no longer see the smuggling of this product.

He mentioned the demand of the national farmer code from saffron buyers by the Finance Organization as another problem and deterrent to saffron exports in the past and specified: farmers were either not willing to provide their national code or did not have an economic code, so exporters had to They were fined 12%.

The head of the Saffron Exporters Union said that the current capacity of the province in the saffron export sector is good, adding: However, there are still weaknesses, including the lack of liquidity for exporters.

He mentioned the cost of transportation as another problem in the field of saffron export and said: saffron is transported by air and it is calculated in dollars, and on the other hand, due to the volume of saffron packaging, shipping costs And the quote is high.

In the past, the export bonus that was given to exporters was one of the aids in paying for transportation, Miri said.

He added: Iran has reputable brands in the world’s saffron and despite being the first producers of saffron in the world, Spain has the European saffron market. We need to be able to capture a larger share of these markets, and this requires the necessary protection of exporters.

Referring to the approval of the comprehensive saffron plan as one of the biggest measures in support of this product, Miri reminded: Unfortunately, despite the fact that two years have passed since the approval of this plan in the Islamic Consultative Assembly, no budget has been considered for its implementation.

He added: The comprehensive plan of saffron is not one-dimensional and includes all the stages of saffron production to export and can help the export of this product and find a suitable position in global markets if the budget is allocated.