12 June 2011
If saffron production is geared towards exports, the country can earn a major portion of the value-added, said a member of the Board of Directors of the National Saffron Council.
Speaking at the second meeting of the council's board of trustees in Birjand, South Khorasan province, Ali Husseini added, "Under present conditions, we do not produce saffron for exports ... and hence a major portion of the value-added goes to the foreigners.
"Currently, our saffron packaging can compete globally, but we want the farmers to observe health issues from production to packaging."
This is while in products such as tea, this is done by the processing factory, Husseini added.
Farmers should record saffron output after harvesting, he said, adding "We must generate new job opportunities and prepare units for processing, quality control and complementing the packaging process."
Speaking to IRNA on the sidelines of the meeting, Husseini said the government is the most important missing link to improvement in national saffron production.
Plantation Standards
One of the most important moves which can help upgrade production is for the government to set the standards for planting saffron, the official noted.
He further said that since saffron grows in dry areas, Agricultural Jihad Ministry should set the model for planting so that farmers would not rush to plant saffron because of its high final price while neglecting other cash crops.
"Excessive cultivation of saffron leads to a fall in the price of this product. We request the Agricultural Jihad Ministry to guarantee purchase of organic products. This will provide further incentives for farmers," he noted.
He underlined that the government should also encourage an increase in per capita consumption of saffron.
"The best way to promote export is to conduct an extensive publicity campaign. Based on our estimates, advertising costs in the current Iranian year (started March 21) is 30 billion rials (about $3 million). Since our farmers cannot afford this, the government should pay for it."
Supportive Laws
Head of the Board of Directors of Saffron Development Fund said on Friday given the legal vacuums for Iranian saffron, the best thing that the government can do is to set new laws to overcome the shortfall.
"The dearth of such laws has led to Spanish firms infiltrating the local market and controlling it. These companies act against our national interests. Spanish companies have ruined the homogeneity of the domestic market and have blocked the formation of national saffron brand," added Ali Shariati Moqaddam.
He recalled that there are 40 saffron exporting units in the country which export only 22 percent of saffron as finished product in packages below five grams and the remaining portion is sold in bulk to Spanish and UAE firms.
"Such trade practices take place because people prefer immediate personal gains over long-term interests and in the past many saffron exports observed trade ethics. Of course, today the situation has changed and one of the main reasons for the establishment of Saffron National Council is to preserve national interests over personal gains of producers, processors and exporters. It is also necessary for the government to extend more support to the private sector," he noted.
The official recalled that saffron export in 2008 was 6.5 percent of the total production while this figure now stands at 22 percent.
Shariati Moqaddam also said that publicizing Iranian saffron in the world markets requires investment.
"Presently, our worry is that some rivals in the global saffron market receive support and also have certain trade advantages. We must be vigilant and make serious moves. Since, Iran produces 96 percent of the world's saffron, Iranian saffron should serve as a model for (other countries)," he concluded.
If saffron production is geared towards exports, the country can earn a major portion of the value-added, said a member of the Board of Directors of the National Saffron Council.
Speaking at the second meeting of the council's board of trustees in Birjand, South Khorasan province, Ali Husseini added, "Under present conditions, we do not produce saffron for exports ... and hence a major portion of the value-added goes to the foreigners.
"Currently, our saffron packaging can compete globally, but we want the farmers to observe health issues from production to packaging."
This is while in products such as tea, this is done by the processing factory, Husseini added.
Farmers should record saffron output after harvesting, he said, adding "We must generate new job opportunities and prepare units for processing, quality control and complementing the packaging process."
Speaking to IRNA on the sidelines of the meeting, Husseini said the government is the most important missing link to improvement in national saffron production.
Plantation Standards
One of the most important moves which can help upgrade production is for the government to set the standards for planting saffron, the official noted.
He further said that since saffron grows in dry areas, Agricultural Jihad Ministry should set the model for planting so that farmers would not rush to plant saffron because of its high final price while neglecting other cash crops.
"Excessive cultivation of saffron leads to a fall in the price of this product. We request the Agricultural Jihad Ministry to guarantee purchase of organic products. This will provide further incentives for farmers," he noted.
He underlined that the government should also encourage an increase in per capita consumption of saffron.
"The best way to promote export is to conduct an extensive publicity campaign. Based on our estimates, advertising costs in the current Iranian year (started March 21) is 30 billion rials (about $3 million). Since our farmers cannot afford this, the government should pay for it."
Supportive Laws
Head of the Board of Directors of Saffron Development Fund said on Friday given the legal vacuums for Iranian saffron, the best thing that the government can do is to set new laws to overcome the shortfall.
"The dearth of such laws has led to Spanish firms infiltrating the local market and controlling it. These companies act against our national interests. Spanish companies have ruined the homogeneity of the domestic market and have blocked the formation of national saffron brand," added Ali Shariati Moqaddam.
He recalled that there are 40 saffron exporting units in the country which export only 22 percent of saffron as finished product in packages below five grams and the remaining portion is sold in bulk to Spanish and UAE firms.
"Such trade practices take place because people prefer immediate personal gains over long-term interests and in the past many saffron exports observed trade ethics. Of course, today the situation has changed and one of the main reasons for the establishment of Saffron National Council is to preserve national interests over personal gains of producers, processors and exporters. It is also necessary for the government to extend more support to the private sector," he noted.
The official recalled that saffron export in 2008 was 6.5 percent of the total production while this figure now stands at 22 percent.
Shariati Moqaddam also said that publicizing Iranian saffron in the world markets requires investment.
"Presently, our worry is that some rivals in the global saffron market receive support and also have certain trade advantages. We must be vigilant and make serious moves. Since, Iran produces 96 percent of the world's saffron, Iranian saffron should serve as a model for (other countries)," he concluded.
© Iran Daily 2011
