The China Mail - Iran's carpet industry unravelling under sanctions

USD -
AED 3.672498
AFN 63.503463
ALL 83.463315
AMD 376.986282
ANG 1.790083
AOA 916.999701
ARS 1385.5001
AUD 1.455519
AWG 1.8
AZN 1.697717
BAM 1.699513
BBD 2.014051
BDT 122.697254
BGN 1.709309
BHD 0.377509
BIF 2970.416618
BMD 1
BND 1.287696
BOB 6.935386
BRL 5.249203
BSD 0.999996
BTN 94.787611
BWP 13.787859
BYN 2.976638
BYR 19600
BZD 2.011105
CAD 1.38957
CDF 2282.497331
CHF 0.79815
CLF 0.023381
CLP 923.220134
CNY 6.91185
CNH 6.910575
COP 3675.3
CRC 464.366558
CUC 1
CUP 26.5
CVE 95.823032
CZK 21.287398
DJF 178.063563
DKK 6.487585
DOP 59.522516
DZD 133.12557
EGP 53.60199
ERN 15
ETB 154.582495
EUR 0.868195
FJD 2.24025
FKP 0.752712
GBP 0.753015
GEL 2.679845
GGP 0.752712
GHS 10.957154
GIP 0.752712
GMD 73.496975
GNF 8767.699413
GTQ 7.653569
GYD 209.330315
HKD 7.83265
HNL 26.549649
HRK 6.542699
HTG 131.078738
HUF 337.827038
IDR 16992
ILS 3.13965
IMP 0.752712
INR 94.54595
IQD 1309.975365
IRR 1313250.000126
ISK 124.680163
JEP 0.752712
JMD 157.400126
JOD 0.709001
JPY 159.638505
KES 130.050221
KGS 87.450178
KHR 4004.935568
KMF 427.999997
KPW 900.00296
KRW 1515.180048
KWD 0.308023
KYD 0.833344
KZT 483.44391
LAK 21749.12344
LBP 89547.486737
LKR 314.996893
LRD 183.502503
LSL 17.171359
LTL 2.95274
LVL 0.60489
LYD 6.383247
MAD 9.346391
MDL 17.564303
MGA 4167.481307
MKD 53.547773
MMK 2098.832611
MNT 3571.142668
MOP 8.068492
MRU 39.926487
MUR 46.9159
MVR 15.449664
MWK 1733.901626
MXN 18.05465
MYR 4.019496
MZN 63.949773
NAD 17.171583
NGN 1382.179868
NIO 36.800007
NOK 9.73768
NPR 151.645993
NZD 1.74163
OMR 0.384435
PAB 1.000013
PEN 3.483403
PGK 4.321285
PHP 60.756974
PKR 279.086043
PLN 3.715515
PYG 6537.91845
QAR 3.646009
RON 4.4255
RSD 101.931978
RUB 81.502485
RWF 1460.256772
SAR 3.752499
SBD 8.042037
SCR 14.901688
SDG 600.999691
SEK 9.45515
SGD 1.28755
SHP 0.750259
SLE 24.550138
SLL 20969.510825
SOS 571.503052
SRD 37.600996
STD 20697.981008
STN 21.28926
SVC 8.74968
SYP 110.527654
SZL 17.169497
THB 32.779898
TJS 9.555322
TMT 3.5
TND 2.948402
TOP 2.40776
TRY 44.41694
TTD 6.794374
TWD 32.0145
TZS 2584.999806
UAH 43.831285
UGX 3725.347921
UYU 40.479004
UZS 12195.153743
VES 467.928355
VND 26335
VUV 119.385423
WST 2.775484
XAF 569.988487
XAG 0.014146
XAU 0.000221
XCD 2.70255
XCG 1.802248
XDR 0.708991
XOF 569.988487
XPF 103.633607
YER 238.59797
ZAR 17.06745
ZMK 9001.197652
ZMW 18.824133
ZWL 321.999592
  • RBGPF

    -13.5000

    69

    -19.57%

  • CMSD

    -0.1600

    22.5

    -0.71%

  • CMSC

    -0.1000

    22.67

    -0.44%

  • BCE

    -0.0200

    25.23

    -0.08%

  • JRI

    0.1200

    11.92

    +1.01%

  • RELX

    0.7800

    32.75

    +2.38%

  • BCC

    0.5200

    74.95

    +0.69%

  • RYCEF

    -0.4000

    14.29

    -2.8%

  • RIO

    2.1800

    88.82

    +2.45%

  • GSK

    0.3900

    54.23

    +0.72%

  • NGG

    1.7700

    83.69

    +2.11%

  • VOD

    0.2100

    14.7

    +1.43%

  • AZN

    5.4600

    193.88

    +2.82%

  • BTI

    0.4600

    58.26

    +0.79%

  • BP

    0.6700

    47.35

    +1.41%

Iran's carpet industry unravelling under sanctions
Iran's carpet industry unravelling under sanctions / Photo: © AFP

Iran's carpet industry unravelling under sanctions

Once a symbol of cultural prestige, Iran's handmade rugs are no longer selling as fast as they once did, as sanctions weigh on an already troubled economy and buyers' tastes change.

Text size:

Commanding more than $2 billion in export revenues in its heyday of the early 1990s, the industry now struggles to scrape together around $40 million, marking a dramatic collapse of more than 95 percent.

The reimposition of sanctions in 2018 meant the age-old craft lost what was traditionally its largest market -- the United States.

"In the years when the unkind and cruel US sanctions on the hand-woven carpet sector were imposed... we lost the US, the buyer of more than 70 percent of Iranian hand-woven carpets," Zahra Kamani, head of Iran's National Carpet Centre, told state TV.

In 2017, just before the sanctions were revived, rugs were still considered one of the country's key non-oil exports, with a revenue of more than $400 million.

But Iran's customs organisation said that during the last year of the Persian calendar that ended in March, exports stood at just $41.7 million.

Exports went to 55 countries that year, topped by Germany, the United Arab Emirates, Japan and China.

In the interim, competitors such as India, China, Nepal and Pakistan have seized the opportunity, seeking to fill the gap in the global market.

- 'High price tag' -

Some of those rugs even make their way to Iran, where, according to Kamani, at least two million people, including women in rural areas, depend on the carpet-weaving industry for their livelihood -- sometimes earning as little as a few dollars a day.

Carpet trader Hamed Nabizadeh told AFP that "Iran is importing carpets from other countries, such as India, Turkey and China. We are losing a part of our domestic sales volume in the Iranian market due to these imports".

For decades, Western tourists would pass through Iran, picking up rugs as souvenirs or gifts. But with the country's tourism industry also hit by travel warnings and hostile relations, fewer foreigners are visiting, translating to fewer rug sales.

Nabizadeh moreover says that even the tourists who come "might not be interested in our work as consumer tastes have changed" and "the price tags are quite high".

"It is somewhat difficult for even someone living in a European country to buy a silk carpet for, say, $30,000 to $40,000. The transportation of the carpet is also quite challenging for tourists," he added.

Experts attribute the market slump to a tangle of economic and political factors.

Broad international sanctions have cut off vital markets, while flawed domestic currency and foreign-exchange policies -- especially those restricting repatriation of export revenues -- have crippled competitiveness.

Compounding the issue, rising production costs and weak government support have squeezed the industry.

- Revitalising industry -

Iranian officials insist that the revival of the industry and the art of carpet-weaving, which dates back to the Bronze Age of Persia, is possible.

"We have lost some international markets, but we hope that with the country's trade and currency laws we can resuscitate this industry," Trade Minister Mohammad Atabak was quoted as saying by state news agency IRNA in June.

"We are trying to promote and facilitate exports for the country's merchants with newly signed agreements," he added.

For Nabizadeh, the way out of this crisis is to pay more attention to "current trends in decoration".

"We should produce carpets based on those trends and not be too prejudiced that the carpet must have the same old shapes and patterns."

He cited "attracting online customers through social media" and "creating strong branding for carpets" as other possible solutions.

But with the collapse of the national currency against the dollar, even the domestic market is at risk of evaporating.

"Even though I always wanted handwoven carpets for my dowry and my family had promised me that, they couldn't afford them. Instead, we opted for factory-made ones," said Shima, a 31-year-old bride-to-be.

"It is an age-old marriage tradition that the bride should provide the carpets of the house," said Shima, who did not wish to provide her full name to maintain her privacy.

"However, many families are choosing factory-made rugs these days because of their lower prices or do not buy carpets altogether if they are of the more needy classes."

Now, with Iran increasingly losing domestic customers and global markets dominated by lower-cost imitations, the Persian rug risks becoming a relic of a lost golden age, with its legacy hanging by a thread.

H.Ng--ThChM