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The price of Iranian saffron is at an impasse

Alireza Ghanizadeh, CEO of the Rural Cooperative Organization, announced the supply of saffron on the stock exchange and said: We offer saffron on the stock exchange for export. I give good news that the price of saffron will increase and reach twice the current market rate. Saffron should be 16 million tomans per kilogram.
At the same time, saffron market activists and farmers were not happy with the news and comments on these reactions with the headline Dream of a stock market for saffron. It has been almost a month since then and the price of saffron in the market has not increased significantly.

Some experts estimate the price of saffron to be stable over the past month, while others believe that prices will rise by 5 to 10 percent. But on the other hand, the price of each kilogram of saffron in the futures market for November delivery in the commodity exchange reached 17 million and 400 thousand tomans yesterday. Now, due to market saturation and a sharp decline in exports, the price of saffron is at least 6 million and 500 thousand tomans and at most 9 million and 500 thousand tomans. These rates are not satisfactory for farmers due to the cost of saffron, which is estimated at 6 to 7 million tomans per kilogram, because the cost of production and living for farmers has multiplied, but the price of saffron has not increased but compared to the harvest season (8 months ago) It has decreased by about 15%. Market participants predict that if conditions remain the same in July, saffron growers will be more likely to lose money.

The problem is 72 tons of saffron
This is while November is the saffron harvest season and according to the experience every year at that time, we see an increase in supply in the market and a decrease in prices. The vice-president of the National Saffron Council told Shahr-e Ara about this: It seems that the transactions made on saffron in the stock market are a kind of speculation. I and other market participants at the same time sell saffron at a price of 11 million tomans to anyone who is a customer.

Gholamreza Miri adds: Another problem in the current market situation is 72 tons of saffron, which is now in the possession of the Rural Cooperative Organization. Existence of this amount of saffron in the market has led to the impression that the market is saturated and this has led to prices remain stable in the market and on the other hand foreign customers are aware of this issue and this has led to the price of export saffron. Stay constant.

If the organization intends to support and benefit farmers, it would be better to abandon the sale of the 72 tons of saffron it has, he said, noting that the Rural Cooperative Organization has bought saffron from farmers to support them. This amount of saffron is not a big number for the Rural Cooperative Organization and the government. I promise your audience that if the Rural Cooperative Organization takes such a position, the price of saffron in the market will increase within 5 days.

We do not have a problem with exports now, and exports will take place as long as the destination countries are not in the red in terms of the corona, Miri said. Of course, the only current problem is the return of currency from exports. However, exports are in rials and exporters have difficulty returning the currency.