Iran News: Iranian Saffron Industry Struggles as Foreign Competitors Rebrand It 

Written byMansoureh Galestan

21st October 2024

Iran’s saffron industry, once a global leader in quality and production, is now facing significant challenges due to a combination of economic mismanagement, international sanctions, and aggressive competition from abroad. As foreign competitors repackage and sell Iranian saffron under their own brands, Iranian officials express concern over the future of this key export commodity. 

According to statements from Mohammad-Hassan Didehvar, a member of the Iran-Spain Joint Chamber of Commerce, foreign entities, particularly Spain, have been purchasing Iranian saffron, repackaging it, and marketing it as a Spanish product. “Iran has been the main supplier of saffron exported from Spain, which is then sold globally as a Spanish product,” Didehvar told ILNA News Agency on October 19, 2024. He emphasized that while Spain has started cultivating saffron, its supply is still largely dependent on Iranian imports. 

On October 15, PressTV, a mouthpiece of the Iranian regime often used to impress Tehran’s foreign audiences, claimed that “Iran produces over 90% of the world’s saffron, but sanctions and other obstacles have hindered its ability to capitalize on this market.” 

The issue extends beyond Spain. Countries like Afghanistan and the UAE are also reportedly buying bulk Iranian saffron, rebranding it, and distributing it to markets worldwide. Didehvar explained that this practice, alongside banking restrictions caused by sanctions, has severely hampered Iran’s ability to profit from its own production. “Now, Afghan traders have more favorable banking conditions in Spain than Iranians, allowing them to outperform us in this market,” he added. 

The situation has not only impacted international sales but also the domestic market. Farshid Manouchehri, Secretary of Iran’s National Saffron Council, expressed concerns over the declining consumption of saffron within Iran. “When the price per kilogram of saffron reaches 70 to 80 million tomans, domestic consumption sees a notable decline due to the lack of increase in people’s incomes,” Manouchehri stated in an interview with ILNA earlier this year. The reduction in domestic consumption reflects broader economic hardships within the country, compounded by inflation and stagnant incomes. 

Despite efforts to navigate these challenges, Iranian traders are forced to rely on intermediaries and complex financial arrangements in African and Arab countries, adding to the cost and risk of trade. “Iranian traders must use unconventional routes to bypass sanctions, often through middlemen in other countries, which increases both expenses and risks,” Didehvar noted, highlighting how these methods are not sustainable solutions for long-term trade stability. 

The struggles of the saffron industry mirror the difficulties faced by other traditional Iranian exports such as pistachios and carpets. Despite pledges by the Iranian government to boost non-oil exports, there has been limited success. The regime’s failure to establish proper branding for Iranian saffron has allowed competitors to dominate the market, leaving Iranian farmers and traders to bear the brunt of lost revenues. 

The current state of the saffron industry, along with the larger economic crisis in Iran, reflects the consequences of the regime’s mismanagement and inability to adapt to global market changes.  

The decline of Iran’s saffron industry reflects how the regime’s malign agendas have undermined the country’s traditional trade and economic strength. Aggressive regional policies, systemic corruption, and international sanctions have stifled growth, allowing foreign competitors to profit from Iran’s resources. Once-thriving industries are now struggling, as the regime prioritizes its hegemonic ambitions over the nation’s economic future.