National saffron development fund to regulate disordered market

Mashhad, Khorasan Razavi Prov., Dec 7, IRNA – Secretary of the National Saffron Council says formation of a national saffron fund will be a basic mechanism for solving the disordered situation in the market and regulating price fluctuations. Farshid Manouchehri told IRNA that based on forecasts saffron output will drop by 25 to 30 percent and this has caused an increase in price. In order to regulate and stabilize condition of this product establishment of centers is needed for guaranteed purchase of saffron by exporters, that is to say the same national saffron development fund which should be supported and become operational by the government. Manouchehri said that over 75% of saffron production is exported adding that with the formation of the fund in which both producers and exporters will be present and have a share, in practice conditions of this product can both be stabilized and adjusted. He said when the exporter by receiving financial facilities from the fund can directly purchase the product from the farmers or agricultural groups in practice the hands of the middlemen will be curtailed from the market. The official said that the fund can be realized with the support of the Agriculture Jihad Ministry as well as the Ministry of Industry, Mines and Trade. He said for the purchase of one ton of saffron over 50 billion rials capital is needed and for using banking facilities a heavy bail is required which cannot be afforded by the exporters unless banks accept saffron as the bail. However, he added, in the absence of action no one can use such facilities and saffron market will remain unorganized./end