Barriers to Saffron Exports
According to Gholamreza Miri, Iran has witnessed a 61% growth in saffron exports in the first few months of this year compared to the same period last year. While this growth is significant, it could potentially reach 100% if governmental obstacles are addressed. With the right support, the country can surpass its previous export record of 325 tons in 2020.
The Need to Remove Barriers for Exporters
Barriers to Saffron Exports
Mr. Miri emphasized that farmers require financial support to avoid selling their valuable saffron at low prices. Similarly, exporters need specific assistance: the removal of barriers hampering the export process. He highlighted a discrepancy between customs base prices and the actual market price, noting that saffron exported at $700 per kilogram is unfairly taxed as if it were sold at $1,200. Such issues create financial challenges for exporters.
How Barriers Encourage Saffron Smuggling
Barriers to Saffron Exports
Barriers also pave the way for smuggling. When legitimate exporters face additional costs and complications, low-quality saffron enters the global market illegally. Exporters propose that revenues generated from saffron exports should be traded on the open market, preventing financial losses and boosting legitimate trade.
The Potential Growth in Saffron Exports
Barriers to Saffron Exports
Addressing these barriers can significantly increase saffron exports. While current export volumes are around 400 tons annually, Miri suggests that strategic support could elevate this figure to 1,000 tons. He also called for a return of export incentives, last provided in 2008, to encourage and sustain growth in saffron trade.
Innovative Solutions to Support Exporters
One proposal involves allowing saffron exporters to import other goods or directly offer foreign currency to essential goods importers. Such measures could offset losses and create a more favorable environment for saffron exporters. Proper implementation of these suggestions could turn saffron into an even more valuable economic commodity for Iran.
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