Page 41 - IRANRptSep18

Province grows 95% of Iran’s saffron output, with much of the product shipped in its raw form to markets including North America, India and Europe.
More than 172 metric tonnes of saffron worth $246.7mn were exported to 47 countries in the 2017/2018 Persian year that ended March 20, according to Gholamreza Miri, chairman of Iran’s National Saffron Centre. That represented a 32.3% y/y rise in volume by weight.
To boost overall value and create a market for trading, saffron futures were launched on the Iran Mercantile Exchange (IME) in May.
The idea of selling the lucrative commodity produced in Iran by the kilo on the exchange was long floated, and the move followed months of preparation. Several government body approvals were needed before the rare flower stem used as a spice could be upgraded to become a tradable commodity on the exchange. According to the IME’s website on August 7, the spot price for Grade 1 Saffron stood at IRR53,954 per gram; this was while the buyer’s price for Grade 1 (Normal Tufts) was at IRR48,566.
9.1.6 Retail sector news
The Islamic Republic of Iran Customs Administration (IRICA) has announced that the tariff charged on imported cosmetics tariffs is to be hiked from 10% to 26%, Mehr News Agency reported on August 28.
IRICA has come under increasing heat in recent weeks for failing to process and release thousands of tonnes of imports to the market. Officials in Iran are attempting to protect hard currency held in the country by encouraging domestic manufacturers to push foreign products deemed unnecessary luxuries out of market segments.
Retailers in Iran are dealing with disgruntled customers and a secondary market dollar rate hovering at more than Iranian rial (IRR) 95,000. Goods are often highly expensive or no longer available. The IRR has lost more than 50% of its value against the dollar since in April the markets assessed that the US was about to reimpose fresh heavy sanctions on Tehran. In May it confirmed it was doing so. The first set of sanctions snapped back in early August, and a second set will take effect from November 5.
Several French cosmetic companies which intended to enter the Iranian market or are already present in Iran have faced a barrage of problems in repatriating their earnings. They have also seen their local currency accounts deplete by a huge amount due to the devaluation.
Iran’s Cosmetic Retailers Association previously estimated that the Iranian market for make-up stands at $2.1bn annually, making it the second biggest such market in the wider MENA region.
9.1.7 Fast moving consumer goods sector news
The prices of imported fast moving consumer goods (FMCG) currently on shelves in Iran can be legally increased by a maximum of 17%, according to an interpretation of new rules given by Ali Avazpour, the managing director of the Chamber of Guilds of Iran, Mehr News reported on July 18. The price tags faced by consumers of imported goods on both legitimate and black markets have fluctuated at unprecedented rates in recent weeks given wild swings in the value of the collapsed Iranian rial (IRR), which on the now illicit unofficial market stood at IRR82,500 to the dollar by midday, local time, on July 18. Iran’s currency nosedived after it became clear that with the use of heavy sanctions the US is waging economic warfare on the country in order to try and force Tehran into renegotiating the nuclear deal.
41 IRAN Country Report September 2018 www.intellinews.com