Saffron Exports Impact
Saffron Exports Impact:Mashhad, Iran – The president of the Mashhad Saffron Sellers Union reported a sharp decline in saffron exports this year due to COVID-19 and reduced demand from other countries.
Decrease in Saffron Exports Due to the Pandemic
Gh. Meyri shared in an interview with IRNA that the mandatory lockdown caused significant disruptions in saffron packaging, export, and retail businesses. The lockdown caused a sharp decline in saffron exports in March and April, severely affecting operations.
Impact of COVID-19 on Packaging and Export
Saffron Exports Impact : From late February to early April, saffron packaging and export units almost stopped their activities. The pandemic led to a decrease in global demand for saffron. As a result, the packaging, distribution, and export sectors were significantly affected.
Sales and Export Challenges During the Pandemic
Meyri added that while saffron consumption typically increases during the New Year and Ramadan, the pandemic halted these opportunities for sales. Domestic and foreign saffron sales, especially in Arabic-speaking countries, fell to minimal levels.
The Effect on Small Businesses Selling Saffron
Retail businesses selling saffron completely shut down between late February and early May. These businesses saw no sales, and their livelihoods were impacted by declining domestic and international trade.
Recovery of the Export Market
Meyri emphasized that the situation will not improve until international flights resume. There has been no demand for Iranian saffron from other countries, and local markets remain closed due to travel restrictions. Mashhad, a pilgrimage city, has seen fewer visitors.
Lack of Requests from Foreign Markets
The lack of foreign orders has stunted the recovery of packaging and export businesses. As religious and tourist sites stay shut, demand from pilgrims and tourists in Mashhad is virtually nonexistent, leading to a dormant saffron market.
Impact on Employment in the Industry
Saffron Exports Impact : Meyri emphasized that saffron export and packaging units face heavier financial losses compared to retail businesses. While retail businesses are minimally impacted, companies dealing with large export volumes employ between 50 and 400 workers. Despite the forced inactivity, these companies continued to pay wages without any layoffs.
The Financial Strain on Export Units
He also mentioned that a 31% wage increase added financial pressure on the saffron export and packaging sectors. These businesses had to bear extra costs despite no revenue during the pandemic. They supported external contractors, further increasing the financial burden.
Request for Support for Saffron Export
Saffron Exports Impact: The president of the Mashhad Saffron Sellers Union called on the government to provide tax and insurance exemptions for businesses in the packaging and export sector. These businesses were forced to shut down for two months. The Union also requested the exclusion of export revenue returns for 2019 in the 2020 budget to help relieve financial strain.
The Need for Government Assistance
Meyri suggested that the government should offer financial relief through insurance discounts and tax exemptions for businesses in the saffron export and packaging sectors to help them recover from the economic setbacks.
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