Iran's saffron exports have experienced a significant decline during the current Persian calendar year (March 2024–25), with experts attributing the drop to smuggling and domestic trade barriers, according to the Iranian media.

The country historically produced more than 90% of the world's saffron and exported most of its harvest through traditional trade networks. However, new data indicates that exports have moved wholesale to the black and grey markets for the expensive spice as sanctions and taxes plague producers. 

Saffron is a spice derived from the “saffron crocus” or Crocus sativus. Its vivid crimson threads are collected and dried, mainly for use as seasoning and colouring agents in food. Traded for over four millennia, it is also used in traditional medicine and as a fabric dye, most famously in making saffron-coloured robes for Buddhist monks.

Hossein Zeynali, an official from Iran’s Ministry of Agriculture, reported that Iran exported 42 tonnes of saffron in the first four months of the current Persian year (March 20 – July 21), marking a 37% year-on-year decline.

Meanwhile, the Islamic Republic of Iran Customs Administration (IRICA) noted that saffron exports had dropped by 53% in value in the initial five Persian calendar months (March 20 – August 21), although it did not specify the corresponding volume.

According to the experts, the widespread smuggling of Iranian saffron is one of the major issues contributing to the decline in Iranian saffron exports.

This issue is compounded by export barriers imposed by Iranian organisations and the government, which make saffron exports unprofitable for exporters and expensive for buyers.

Gholamreza Miri, deputy head of Iran's National Saffron Council, earlier estimated that around 10 tonnes of saffron are smuggled out of Iran each month, Donaye Eqtesad reported.

He highlighted the role of sanctions, which limit saffron exports to key markets like the US and Saudi Arabia and force the product to be funnelled through countries like Afghanistan, the UAE and Spain.

The situation is further complicated by high tariffs on Iranian saffron exports to India and China, making it less competitive in these markets. In contrast, Turkmen and Afghan saffron, which benefits from zero tariffs on exports to India, has increased its share of the Indian market.

Miri also stressed the importance of preventing the smuggling of saffron corms, which are more important than the product itself, YJC reported.

He warned that ongoing smuggling could jeopardise Iran’s position as the world’s top saffron producer, as other countries that now cultivate saffron have done so using smuggled Iranian corms over the past 10 to 15 years.

Iran exported 221 tonnes of saffron valued at $207.78mn during the last Persian calendar year (March 2023-24), down 8% in weight and 15.7% in value compared to the previous year, according to customs expert Rouhollah Latifi.

The UAE was the top export destination for Iranian saffron, with 67.12 tonnes of saffron imports during the period, followed by China, which had 49.2 tonnes, and Spain, which had 43.82 tonnes.

Despite the decline, Latifi noted that Iran's official saffron exports to Afghanistan increased by 198%, reaching 21.71 tonnes during the year.