Iran Pistachio market update 5 November 2018
There are 4 factors currently affecting the Iran pistachio market
1-The dollar’s instability
Dollar’s instability has affection on Iran pistachio price,Due to the Iran-US dispute and the announcement by the United States about the imposition of sanction against Iran, created a psychological climate, with the dollar rising to 180,000 Rials last month.
With the replacement of the Central Bank chairman of Iran and the change of central bank policies, as well as the emphasis of 4+1 countries (Germany, Britain, France, China and Russia) in the absence of the United States in these sanctions and declaring support for Iran, the price of the dollar fell to 140,000 Rials.
But given the fact that today all the sanction against are being revoked by the United States, it can cause changes in the price of the dollar, which causes uncertainty and confusion among Iranian traders.
2-Pistachio crop reduction
In 2017-2018, Iran pistachio production was reduced by more than 70 percent due to untimely cold and warm weather , the highest reduction in pistachio harvest has occurred in Kerman province , the largest and oldest center of pistachio, most of the old pistachio exporters used to buy pistachio from this province.
That’s why supplying the product to export pistachio is hard this year.
3-Governmental directive on the return of the export currency
The Iranian government has announced in the circular that the currency derived from the export of Iran pistachio must be sold on a stock exchange under the supervision of the government; in the government exchange.
the price of the dollar is in the range of 80000 to 90000 Rials , which is very costly to the exporters.
The Iranian government has also announced that Iranian pistachio exporters who refuse to sell their dollars on the stock exchange
They are known as smugglers , and this has been a concern for exporters, because if a dollar is traded in a stock exchange , each issuer will cost about 60,000 Rials per dollar.
4-Buy in cash
Last year, most Iran pistachio merchants bought pistachio in credit from farmers and they paid them after sale of the product, this year because of a shortage of pistachio, farmers only sell their pistachios in cash.