Iran's Saffron Smuggling Escalates

The Vice President of Iran's National Saffron Council revealed that an estimated 10 tons of saffron are smuggled out of Iran each month due to export complications.

The Vice President of Iran's National Saffron Council revealed that an estimated 10 tons of saffron are smuggled out of Iran each month due to export complications.
Speaking to ISNA news agency, Gholamreza Miri highlighted that sanctions and domestic issues have hindered the ability to manage saffron exports effectively.
Direct saffron exports to key markets like the United States and Saudi Arabia are currently unfeasible due to sanctions. Consequently, Iranian saffron is being rerouted through countries like Afghanistan, the UAE, and Spain before reaching the global market.
"To export saffron to China and India, we must pay 38 percent and 14 percent tariffs respectively, which makes it not cost-effective for exporters, thus increasing the finished cost. As a result, some buyers prefer to purchase saffron from Afghan traders or smugglers," he said.
Farshid Manuchehri, Secretary of Iran’s National Saffron Council, reported that Afghanistan had purchased 40 tons of Iranian saffron last year, only to resell it in Iran’s target markets at higher prices, branding it as Afghan-produced.
Miri also noted in January that most of Iran's saffron is smuggled to Afghanistan and packed in Spain.
Miri said that high customs duties and embargoes are among the factors for trafficking with almost half of the value of Iran's annual saffron production ending up in the pockets of smugglers.
The illegal trade is exacerbated by extreme weather conditions that have halved saffron production in Iran, the world's primary supplier of the spice. Climate change has devastated areas once thriving with saffron cultivation, impacting local economies and global supply chains.

Journalist and student Dina Ghalibaf was transferred to the women's ward of Evin Prison on Saturday following the completion of her interrogations after being arrested for non-compliance with mandatory hijab.
Since her arrest on April 15, she has been arrested twice and reportedly faced sexual assault and other abuses at the hands of the morality police, incidents she bravely detailed in public disclosures amid a hardened presence of the patrol vans around Tehran and other cities.
Her re-arrest just one day after her initial arrest aligns with the reactivation of the Plan Noor initiative, under which the morality police have escalated their enforcement of the compulsory hijab. The intensified crackdown has sparked a wave of violent encounters involving women who oppose the dress code regulations, emphasizing the harsh realities faced by those who resist.
The renewed enforcement effort comes in the wake of a directive from Iran’s Supreme Leader Ayatollah Ali Khamenei. In a recent sermon, Khamenei demanded increased measures against what he termed "religious norm-breaking" activities, explicitly underscoring the mandatory nature of the hijab as a "religious decree."
The increased enforcement has led to heightened tensions and confrontations across various Iranian cities, signaling an escalation in governmental efforts to impose control over women’s dress—a policy that has been met with persistent resistance since it was mandated in 1981, following the Islamic Revolution.
Iran has battled nationwide hijab rebellion since the death in morality police custody of Mahsa Amini in September 2022, an event which sparked a nationwide uprising and the greatest challenge to the regime since the founding of the Islamic Republic in 1979. During protests, Iran's security forces killed at least 500 civilians and arrested thousands more in a brutal crackdown on dissent which continues to today.

A factory in Iran’s Isfahan producing polyester and acrylic yarn is on the verge of bankruptcy and complete shutdown.
According to ILNA, Alireza Khorrami, who represents the Polyacryl Isfahan workers, said the current condition is the result of government mismanagement and a petrochemicals price hike.
Khorrami detailed that a government decision last September to adjust feedstock prices in the textile industry, coupled with an increase in the base price of petrochemical products has pushed raw material costs by 30 percent. This sharp rise has seriously destabilized the financial foundations of the factory.
“The situation has risen to the point where continuing the production is economically unjustifiable and has a deep impact on the liquidity of the company,” added Khorrami.
Polyacryl Isfahan, founded in 1974, was once considered among the most flourishing Iranian industrial complexes but years of managerial neglect and the impact of international sanctions crippled its operations. The factory was previously shut down and was revived in 2017.
The government's unresponsiveness had compounded the current predicament of the factory despite repeated appeals for intervention.
With the looming closure of the factory, Khorrami said that at least 2,000 workers would become jobless and the closure marks a loss for the country in terms of its industrial capacity, mainly in the textile sector.
Over the past few years, skilled workers in Iran have also voiced their frustrations over the widening gap between their earnings and soaring inflation.

The head of the Civil Aviation Organization has announced that the sale of seven-seater jets is now open to all citizens as Iran's aviation industry struggles to stay afloat while one third live below the poverty line.
Speaking to ILNA news agency, Mohammad Mohammadi-Bakhsh, said that "many people are currently taking advantage of the opportunity, including traders, officials, sports teams, and economic teams."
The announcement comes at a time when Iran's economy faces record inflation and widespread poverty, the ability to purchase such luxury jets limited to the country's wealthy political elite who would also be the limited few to be given security clearance to operate such aircraft over Iranian airspace.
The average Iranian is currently struggling to survive with at least one third now living below the poverty line in the last 18 months, the average wage now as low as $400 a month. Basic food costs have become prohibitive and commodities like gas soaring.
Ongoing sanctions for Iran's nuclear program, rights abuses and support to Russia's war on Ukraine have heavily impacted Iran's aviation sector including import restrictions and domestic production limitations.
The Iranian aviation fleet holds a meager inventory, with just 330 aircraft, and less than 200 actively utilized. The industry is struggling to meet operational aircraft targets, with only 180 aircraft currently in service against a planned 250 by the end of last year.
Despite Mohammadi-Bakhsh's previous announcements of a surge in operational aircraft around Norouz, which saw grounded planes returning to service and boosting numbers to 178 during the festive season, the sector still falls short. Last year's efforts reportedly added over 50 aircraft and helicopters to the fleet, yet the target remained unmet.

Following an alleged operation by Israel on Friday on targets in Esfahan, local media fears the fallout of the ongoing tit for tat attacks between Israel and Iran will have severe outcomes for the Iranian people.
In an editorial for Setareh-e Sobh newspaper on Saturday, Ali Saleh Abadi criticized the regime for the “incorrect assessment of the consequences of their actions for the economy and people’s daily lives.”
He wrote, “Any form of conflict, including verbal threats, has a detrimental effect on the economy,” he continued. “We need to ask why Arab countries that went to war with Israel before are now defending it against Iran’s attack.”
The Iranian attack on Israel last weekend involved over 350 missiles and drones, almost all of which were intercepted by Israel and a US-led coalition of allies. In contrast, the operation on Friday involved three missiles fired by fighter aircraft outside of Iran, according to a senior US official speaking with ABC News.
Although Israel has not claimed responsibility for the attack, ABC News and CNN, citing US officials, have attributed it to Israel. According to the former, the air defense radar site in Isfahan was the target of the attacks.
Isfahan is a critical province due to its military bases, and the underground Natanz enrichment facility, which suspected Israeli sabotage attacks have repeatedly targeted.

In Tehran's leading reformist daily Etemad, former minister and long-time intelligence official Ali Rabiei wrote that Israel has not responded proportionally to Iran's barrage of missiles and drones while they seek an international coalition against Tehran with potentially harsh consequences.
Iran claims the bombardment was an act of self-defense after Israel allegedly conducted an air strike on the Iranian consulate compound in Damascus, killing one of the most senior Quds Force commanders and multiple IRGC personnel earlier this month.
In the same paper, Mostafa Zahrani, a former director general of strategic affairs in the foreign ministry, said the new strategy of IRGC’s direct conflict with Israel would "escalate war rather than [act as] deterrence."
In his view, the use of Iran's proxies across the region offers a more effective deterrent than direct conflict against Israel, Zahrani adding that while things are at present relatively calm, “there is a possibility that miscalculations by both sides could result in war.”
In Saturday's Jahan Sanat, Nader Karimi challenged the Iranian authorities' claim of robust defense systems by asking, “Why are these anti-aircraft systems waiting until the micro-birds are flying inside the country and over the nuclear facilities to strike them? They should have been spotted long before by radars. This is not in accordance with the stated security and deterrence strategies." He warned the conflict "will not end soon".
Last week, legal proceedings were brought against Jahan Sanat newspaper, accusing it of "compromising national security" for its coverage of Saturday's operation against Israel. It is the latest legal action to be taken against publications and journalists amidst ongoing crackdowns.
Shargh Daily, a reformist and relatively independent newspaper, speculated if news of the EU and US “yielding to Israeli demands” for tougher sanctions and the Friday attack on Iranian soil signals and ending of the current crisis between the two archenemies.
An ex-parliament member claimed that if Israel was behind the latest attack, “it was a controlled operation that was not intended to provoke international reactions” as powers such as the US call for calm following last weekend's aerial bombardment.
“Sanctions alone are not enough, and Israel had to attack because of balancing geopolitical equations,” Mohammad Javad Jamali Nobandegani said, adding that further Israeli attacks cannot be ruled out.

A member of the Iranian Parliament has warned that Iranians' financial reserves have reached breaking point, stating that the government can no longer continue to drain resources from them.
Referring to the devastating currency fluctuations, Lotfollah Siahkali said, "People's pockets are ripped. If we were using the people's money until now, that is no longer possible".
Amidst ongoing economic challenges including food prices soaring, fuel becoming prohibitively expensive and record unemployment, Siahkali predicted that the latter half of the current Iranian year will prove even more difficult. His comments come in response to significant shifts in the currency market at the start of the year (Mid March), which have fueled inflationary expectations.
Siahkali pointed to the lack of stability in Iran's economic markets as a catalyst for the populace's shift towards more stable economic assets and currency such as the US dollar, gold, and real estate to preserve purchasing power against the rapidly depreciating rial.
The rial has suffered dramatically since the US withdrawal from the nuclear deal in 2018 and the subsequent reimposition of sanctions affecting key sectors such as oil exports and banking.