THE ECONOMICS OF SAFFRON IN IRAN

Saffron is a strategic product in Iran. Iran’s share in the saffron world production and export is almost 90%. Labor requirement for saffron production is 200 man day per hectare. However, this figure is much higher in the processing and marketing sectors. DRC and SCB indices show that production of saffron in Iran has comparative advantages. Marketing margin of saffron is high so that producers receive less than 65% of final price of consumer. Over 70% of household income is made by saffron. According to special advantages of this product, creation of a regional marketing board beside agricultural exchange market for coordinating production, marketing and export and maintaining market share is suggested.