Production situation in the red gold market

Donya’e Eghtesad – Tayebeh Moradi: A 4.5 percent decrease in agricultural production in the spring of this year compared to the same period last year, according to the Statistics Center, is an important alarm that shows that the drought has a real impact on the agricultural market. This is while saffron is one of the most important agricultural products traded on the Commodity Exchange; However, most of the world production of this product is produced in our country.

New Year saffron harvest has started gradually. According to a saffron activist, according to studies, it is estimated that the fields of saffron, which are very old, will flower less in the early harvest season than the previous year. The main reason for the decline in saffron production this year is the drought that we faced in the fall and winter of last year, and the amount of rainfall compared to the previous year was significantly lower. Also, the growth of the cost of production inputs has had an upward trend, which caused many saffron growers to change their cultivation in order to have higher yields. Rising prices of agricultural inputs such as fertilizers, pesticides and labor costs are another factor that has increased the cost pressure on saffron growers.

It has been heard that the average cost of one kilogram of saffron straw produced by farmers is estimated at about 10 to 11 million tomans. This is while the price of each kilogram of straw saffron has reached this amount for almost a month and now (in the deposit certificate market) it has increased. This price is actually the price that can only cover the farmer’s costs. In addition to drought and lack of rainfall, we see little attention to production conditions in the agricultural sector of saffron. The best soil conditions for increasing the flowering of saffron onions in the third and fourth years of cultivation of this crop, which is currently due to the gradual decline of saffron cultivation in recent years, saffron cultivation fields are worn out and not very suitable conditions.

Managing the turbulent situation of the country’s saffron market, despite supplying more than 95% of the world’s saffron, requires a new goal that will be achieved by combining the entire production and export chain of this valuable product. One of the main reasons for the serious drop in the dollar price of saffron in world markets is that there is a serious increase in saffron production at a time and without prior planning, especially when the marketing and trade situation of this product is not very suitable for the destination countries. . Considering the national interests and the interests of saffron producers is one of the most important issues that in the saffron sales phase requires more efforts of the relevant authorities to make more efforts to maintain value both saffron producers and traders with the right supportive and motivational policies. Make this valuable product real.

Considering the above, the possibility of non-growth of export prices should be taken seriously, which will put additional pressure on saffron production in the country, and of course, a little attention to it can put the volume of production and the future of this product in a haze of ambiguity.

Targeting for marketing; The main solution of saffron market

Lack of proper marketing to increase the share of saffron in domestic production in export target markets is one of the reasons that has kept the price of saffron at a minimum. It is a misconception that some people believe that “overproduction of saffron needs has reduced the price of this product”; Because saffron has the necessary potential to increase sales in all parts of the world due to its diverse and many uses in addition to home use in pharmaceuticals and cosmetics companies. Therefore, by studying the target export markets, it will be possible to increase the sales share of domestically produced saffron; Despite the fact that we are the major producer of saffron in the world, pricing from major foreign customers can not be an effective solution for the growth and development of cultivable saffron. Therefore, we need the pricing of saffron by the official commodity markets in the country so that the official stimulus for prices is based on market transparency and predictability and then real support for the agricultural sector.

Unveiling of the saffron protection policy package

The head of the production committee for removing barriers to production, the Special Commission for Leap and Prosperity of Parliamentary Production, announced the guaranteed purchase price of saffron in the new crop year. According to Mohsen Zanganeh, a support package for farmers was approved during the new crop year at a meeting of the Pricing and Support Policy Council for Farmers, which was attended by the Minister of Jihad for Agriculture.

According to the Young Journalists Club, he specified: The minimum agreed purchase price of saffron, which is done by rural and production cooperative unions as well as other agricultural unions, was set at 20 million and 500 Tomans for Negin Saffron for export, although this price is the minimum amount. And it is possible that cooperatives, rural cooperatives or the capital market in the commodity exchange with prices above 20 million tomans also buy saffron from farmers. Zanganeh continued: “In the past, only rural cooperatives bought saffron at the approved price, but this year, from Note 14, we set aside an amount to support saffron, and it was decided to provide part of this amount to the Agricultural Bank as a facility subsidy.” And Keshavarzi Bank will give loans to saffron buyers who observe this price floor with 8% facility with 18-month repayment.

The head of the production committee for removing the barriers to production of the Special Commission for Leap and Production Prosperity, said about the second package of this plan: in the second package, the payment of 500 billion tomans of facilities has been approved In addition, it was approved that the government set up a saffron protection fund by the end of 1400, and it was decided that 49% of the fund’s shares would be brought by the government, which would be provided from the sale of Jihad Keshavarzi assets and paid to the fund. This year is the first year before the start of the season, the government has decided on the price of saffron and announced this price and prepared the budget. This year, with the coordination between the parliament, the government and the agricultural jihad and the resources provided in the 1400 budget, we will not have any worries about the budget of this guaranteed purchase of saffron.

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