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Deputy Minister of Agriculture Jihad;

Overcoming 2 Big Challenges of Saffron Market through IME

At the ceremony of launching the saffron futures on Iran Mercantile Exchange, Deputy Minister of Agriculture Jihad said that we are dealing with two big challenges in the saffron market that with IME’s collaboration will resolve them to a great extent.
Overcoming 2 Big Challenges of Saffron Market through IME

According to the report by the IME’s International Affairs and PR, Ali Akbar Mehrfard pointing that saffron is more commonly used as an additive spice in Iran and as a medicine in the world, stated that last year, 336 tonnes of saffron were produced in the country out of which 236 tonnes were exported, i.e. 20 to 25 percent saffron is consumed in the domestic market and about 80% of it is exported.

Deputy Minister of Agriculture Jihad stated: “The first challenge is the retail farmers; these farmers do not have enough liquidity so that they sell their products as soon as the product is harvested. As a result, 90 percent of the world's saffron is faced with a drop‎ in prices when it reaches the market, and the intermediaries take advantages of this opportunity.”

He said: The Ministry of Jihad-e-Agriculture is obliged to support these farmers. In this regard, during the year 1396 Hijri, the Central Organization for Rural Cooperatives of Iran purchased 67 tonnes of saffron, resulting in prevention of false price reduction for saffron and distribution of profit between retail farmers. In other words, if this big purchase did not take place, all the 150,000 hectares of land and thousands of farms that worked for one year to produce saffron were seriously damaged.

Mehrfard mentioned the second challenge in saffron market and said: "The negative competition of our exporters to sell saffron in global markets is our second problem, which deliver the valuable Iranian product at cheap rates to foreigners and the major profits are passed through to the foreigners."

"Unfortunately, today we witness that some of the big foreign clients directly hired some brokers in Iran to buy them saffron at a cheap price from farmers." he added.

Deputy Minister of Agriculture Jihad said: "As a result, we are facing a weakness in domestic and foreign trade in saffron, which we hope to overcome them in the not too far future through IME’s cash and futures contracts."

At the end of his lecture, he assigned the Securities and Exchange Organization and the Iran Mercantile a special mission to launch international saffron trade and said: “After the boom in the trading of saffron on IME, it is time to internationalize saffron transactions, so that by producing 90% of the world’s Saffron, to be the only price reference for this product.”

Author: International Affairs and PR

ID: 50069692

Published on: Wednesday, May 23, 2018 18:00

Source: IME

View count: 13

Friday, August 17, 2018 19:03

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