Only 20 percent of Iran's saffron exports are packaged within the country.

A powerful center should be established to deal with saffron related issues, said an expert.
Speaking to ISNA, Behzad Sadeqi stated that price fluctuations have threatened Iran’s presence in the international saffron (red gold) markets leading to the hoarding of the precious spice and the decline in export.
“High price of saffron in domestic markets has also led to a fall in the number of domestic consumers,“ he noted.
Turning to the activities of brokers, Sadeqi pointed out that domestic and foreign merchants should be supported until a universal center for saffron related issues is established and the activities of brokers should also be brought under control.
Sadeqi regretted that some 28 tons of saffron bulbs were smuggled to Afghanistan in 2001-2. “Some 28 and 16 tons of saffron bulbs from Italy and the Netherlands respectively have been sent to Afghanistan and will be distributed in 13 southern regions for cultivation under the supervision of United Nations’ experts,“ he said.
According to him saffron cultivation in Afghanistan and the cheap Chinese labor will endanger the red gold markets.
He noted that the future of saffron markets depends on two key issues: increasing saffron output and boosting international marketing.
“If we do not support our traders, we will face problems in saffron production,“ he said, adding Iranian embassies should also introduce the target markets in different countries.
Referring to the supportive packaging which was introduced by Trade Promotion Organization of Iran at the Red Gold Summit in Qaenat, South Khorasan province in November, the expert described the measure as positive. “If only half of such measures are implemented, we will witness an boost in the saffron industry.“
Although Iran produces the top-quality saffron, poor packaging and improper export policies have led to the market being dominated by other countries.
Some 60 percent of Iranian saffron are currently distributed internationally under Spanish and UAE trademarks. Only 20 percent of Iran’s saffron exports are packaged within the country.
Sadeqi concluded that inattention to packaging would cause Iran to lose its international markets one by one.

Chairman of Iran-Italy Chamber of Commerce has said that trade between Tehran and Rome stood at over four billion euros in the first half of 2007.
Talking to IRNA, Jamshid Haghgou stated that transactions between the two countries rose to 200 million euros in January-August 2007 compared to 3.8 billion euros in the same period last year.
He cited figures released by Italian statistics center based on which oil exports accounted for 2.7 billion euros out of four-billion-euro trade between Italy and Iran in the first six months of 2007 whereas the figure was 2.5 billion euros in the same period last year.
Italy exported 1.1 billion euro worth of goods to Iran in the first six months of 2007 while the figure was 1.3 billion euros in the first half of 2006, Haghgou stated.
The official noted that Iran’s non-oil exports to Italy increased this year to reach 380 million euros from 321 million euros last year.
Metals (excluding ironware), meat and meat products, textiles, chemicals, clothing and ornaments are the main items traded between the two countries, he said, adding that Iran’s exports to Italy included fish, precious stones, canned food and vegetables, hide and clothes.
Stressing that political issues surrounding Iran peaceful nuclear programs have not yet influenced Italy’s policies towards Iran, the official stated, adding, “Psychological impacts of such political issues can not be ignored.“
According to Haghgou, despite improper treatment of Iran by some of US’s European allies, Italy is not only reluctant to reduce businesses but also willing to expand trade ties.
Recalling that Italy is Iran’s biggest trade partner in Europe replacing Germany in recent years, he described Rome as ’Iran’s gateway to Europe’. “Iran is also Italy’s gateway to Central Asia,“ he concluded.

Iranians have been making gold ornaments for nearly seven thousand years. In addition to Iran, the Indians and Egyptians are also pioneers in producing jewelries with the yellow metal.
Gold was mentioned in Indian holy scriptures dating back to 4000 BC while the knowledge about the precious metal in Egypt went back to 2645 BC which is even before they knew about silver.
Production of gold ornaments and jewelries, like other industrial and mineral products, is facing numerous challenges in Iran. A number of problems are normal in the industrial sector. However, officials should be blamed for predicaments arising from their apathy towards craftsmen.

Ingot Shortage
Iranian craftsmen are facing a shortage of ingots. Official figures about the volume of gold ingot imported are not available. However, no one can deny the smuggling of gold ingots, mostly in the form of carry-on-luggage, into the country. One reason for smuggling is the high import tariff rate given that the duties on gold ornaments, precious and semi-precious stones only stand at four percent.
On the other hands, irrelevant and time-consuming regulations of the Iranian Standard and Industrial Research Institute, Central Bank of Iran (CBI), Iran’s Customs Administration and Commerce Ministry have impeded smooth imports required for jewelry industry.

Gold Bank
Deputy industries and mines minister for mineral and mineral industry affairs supports setting up a bank for gold ingots.
Mohammad Hossein Basiri told the Persian daily ’Iran’ that a proposal to the effect was submitted to CBI.
The top bank is reviewing the proposal and is conducting talks in this respect, he said, suggesting that bank can offer gold ingots in addition to gold coins to ensure a thriving domestic jewel and gold industry.
According to statistics, 1.5 tons of gold are used daily by craftsmen in Tehran. Most of this amount are smuggled into the country.
The official contended that listing gold ingots in the metal exchange is another strategy for meeting goldsmiths’ demand.
Gold ingot market is not transparent. It seems precious and semi-precious gems have better markets than gold. Iran has a 200-million-dollar share in the 600-billion-dollar global market for precious and semi-precious stones. This has made domestic jewelry manufacturers establish Gold and Jewel Makers Consortium.

Indians & Jewel Tower
India can help in jewel manufacturing and exports. It is difficult to beat Thailand in the sector but the cooperation opens a new chapter for the industry. Plan to import $50 million worth of cut diamonds from India will be finalized within the next two months.
Hamid Kashani, managing director of Asian Jewel Development and Trade Company, hailed the recent move by the ministry to set up the consortium.
He listed shortage of raw material and the lack of coordination among producers as problems facing the industry.
India is one of the leading exporters of cut diamond, exports $20 billion of the precious stone annually.
Iranian producers maintain legal entry of diamonds from India and cutting them at home would help the country to gain a foothold in the jewel market of the Persian Gulf Arab states.
Processing and exporting precious and semi-precious gems will have a value added of between 10 and 25 percent.
According to Kashani, the private sector has teamed up with Indians to open Jewel Tower in Tehran within the next five months. This is a major step towards making Iran an exporter of cut precious and semi-precious gems.
He observed that Iran can export $14 billion to $15 billion worth of precious and semi-precious stones within the next four years.
Kashani stated that Indians can supply raw materials for Iranian producers and the domestic industry faces no problem in technology.
Undoubtedly, if the industry flourishes, it would create numerous jobs.

Iran can easily attain a foothold in the international furniture market.

The 17th International Furniture Exhibition is currently underway in Tehran International Fairground. The event was inaugurated in a ceremony attended by the head of Iran’s Chamber of Commerce, Industries and Mines on Wednesday.
According to Iran Daily, at the ceremony, Mohammad Nahavandian expressed hope that such fairs will help the Islamic Republic in making headway in the world economy.
Underlining the need for active presence of economic enterprises in the global economy, he added that Iran can easily attain a foothold in the international furniture market.
He put the revenues earned from furniture export at $2.5 million in the year to March 2007.
Some 486 domestic and 114 foreign companies from 13 countries are participating in the five-day event. They include Italy, Turkey, France, Austria, Sweden, India, UAE, Canada, Indonesia, China, Poland, Syria and Germany.
The products, including home and office furniture, decoration and interior design, machineries, equipment and accessories are on display in the exhibition.
The exhibition seeks to introduce the potentials of domestic industry, create opportunity to establish relations between leading foreign and domestic companies by concluding agreements as well as provide opportunity for exchange of views among those involved in the industry.

Energy Minister Parviz Fattah has warned that Orumieh, Bakhtegan and, Jazmourian lakes are under threat of drying up, calling on officials to join hands to tackle the impacts of drought in these bodies of waters.
“We should not be indifferent to the (appalling) conditions given the key role they play in country’s ecosystem and the environment,“ the minister urged.
He told IRNA on Friday that the views of some analysts that construction of dams on lakes and rivers would lead to water shortage are ’incorrect’. “Aral Sea in Central Asia is also grappling with low inflow whereas no dam has been built on it or its tributaries.“
The minister stated that all specialized means and mechanisms should be employed to prevent Iranian lakes from drying up.
Highlighting that water should not become a source for political strife, Fattah said that a gathering of the Asia-Pacific states this week showed the importance of water-related issues in the world, particularly in the continent.
Asia-Pacific nations convened on Monday for a first two-day ’water summit’ to plan a line of action amid warnings of shrinking water resources and rising natural disasters.
He said that problems facing the country’s water sector would be solved in the next seven years if two billion dollars of foreign investment are attracted into the field each year and an annual two billion to four billion dollars in domestic investment.
“Otherwise, the problems will linger for the next 12-15 years,“ Fattah warned.

Islamic Republic’s economy suffers from the 30-year inflationary recession, observed a university instructor. In an interview with Fars news agency, Mohammad Vaez stated that a set of intricate policies will be required to counter this dilemma. Inflation and unemployment are also responsible for the problem, he said, pointing out that these rates have been in double digits for years.
He underlined that it would be difficult to overcome the situation adding that fluctuations in oil prices will increase liquidity and inflation thus leading to unemployment particularly among the educated.
Earlier, a Majlis Economy Commission member stated that excessive injection of money into the economy; pressure resulting from rising expenses and psychological factors are responsible for the runaway inflation.
“Liquidity growth has reached an alarming level climbing to 1,400 trillion rials this year from 700 trillion rials two years ago (the year to March 2006),“ Mohammad Khoshchehreh noted. He announced that growing expenses are yet another reason for the rise in inflation. “Cost prices of goods and services as well as wages, energy, raw material, tax and other expenses also contribute to this.“
He added that according to CBI figures, inflation reached 16.2 percent during the month to October 22.

In Iran the total forested area stands at 1.5 million hectares.

Studies conducted nationwide reveal that forests have absorbed about 381 million tons of CO2, said deputy head of Forests, Rangelands and Watershed Organization for forest affairs.
Shamsollah Shariatnejad told ISNA that conservation of forests is a top priority for implementing forestry projects.
He pointed out that based on the latest report released by United Nations Food and Agriculture Organization, forests cover an area of 3.4 billion hectares around the world, putting the per capita forested area at 0.62 hectare.
The official said that some 75 percent of the forested areas are located in Russia, Australia, Brazil, Congo, Canada, Indonesia, USA, Peru, India and China.
Afforestation has been declining throughout the world since the 1992 Rio de Janeiro Conference, he underlined, estimating the global forestation area at 140 million hectares which is 3.8 percent of the entire wooded areas.
He said that the majority of Iranian forests--except for some in Gilan province--are under government ownership. He said that in Iran the total forested area stands at 1.5 million hectares.
Shariatnejad continued that based on satellite photos, Caspian forests have shrunk by 240,000 hectares in the past four decades (1955-1994), indicating a decline of 11.5 percent.
He elaborated that Forests, Rangelands and Watershed Organization has placed high importance on conserving, reviving and developing the northern forests. Therefore, logging has declined in recent years, he added.
The official pointed out that the area under forestry projects has increased by 93.8 percent during 1989-2006 while lumbering decreased by 47 percent during the same period, he concluded.

Managing director of Mahan Air has disclosed that problems regarding Mahan flights to the UK have been solved and the airliner would soon resume operations to that country.
Hamid Arabnejad that presently the company is drawing up a timetable for its flights to Britain, reported ISNA.
In late July, British authorities informed Mahan Air that it could no longer operate flights in Britain because of what they called ’concerns about its safety record’.
Responding to the action of the British authorities, Arabnejad had said that the airliner is following up the issue to resume flights. He underlined, “Nothing more important than flight safety for the airliner.“
In 2006, British investigators announced a probe into an incident in which a Mahan Air jet flying to Birmingham, central England apparently descended to a dangerously low level and was forced to abort landing.