Iranian pistachio exports has decreased recently. Pistachio exports have fallen by more than 60 percent in the first eight months of this year compared to the same period last year. However, Iran used to be the leader of the world's pistachio market and had an annual income of 1,500,000,000 USD for this country.

Depth of wells, water crisis

The water crisis has caused damage to Iran's pistachio production center. Currently, Kerman gardeners say that many pistachio gardens have dried up. So many Iranian pistachio growers have migrated to areas like Saveh, Qazvin, and Khorasan and built their pistachio gardens in these areas. They say that the depth of wells in Kerman sometimes reaches 150 meters in some areas. However, there is no water!

Unable to cover the costs

The situation of pistachio gardeners in Kerman is very unfavorable. They say that they have faced a challenge to cover the costs of this year's cultivation. 70 percent of Iranian pistachios are produced in Kerman province, but many pistachio storage terminals have been closed these days. Gardeners in Kerman say that in Rafsanjan, which is the most significant pistachio production center in the world, pistachio production has decreased by 50 percent. In addition to the severe lack of water resources, the increase in temperature has also caused problems for pistachio farmers and has increased the number of pistachios that are empty inside.

Decline in exports

The water crisis in has disrupted the export of Iran's most important agricultural product (pistachio). Customs statistics indicate a decline in pistachio exports this year. According to the customs export statistics, 38,795 tons of pistachios worth 282,030,129 USD were exported to other countries in the first eight months of 2022. The average price of each kilogram of Iranian pistachios for export has been 7.27 USD during this period. 107,119 tons of pistachios worth 730,428,978 USD were exported in the same period last year (the first eight months of 2021). The average price of each kilogram of pistachios exported by Iran was 6.82 USD during this period. The export of Iranian pistachios declined by 64 percent in terms of weight and by 61 percent in terms of export value compared to last year. Production decrease resulted in a reduction in the number of exports and market inventory and an increase in the price of this product compared to the previous year. The average price of each kilogram of pistachios and pistachio nuts for export has risen by 6.6 percent in the first eight months of this year compared to last year.

1.5 Billion USD income annually

The decrease in pistachio exports is not only related to this year and started many years ago. In 2007, Iran's pistachio exports reached about 265,000 tons, but this number is decreasing in the following years. So that in 2020, Iran's pistachio export reached 203,000 tons, and in 2021 this number decreased to about 168,000 tons. In the last fourteen years, the export of Iranian pistachios has fallen by almost a third. The export of pistachios has dropped by more than 60 percent in the first eight months of this year compared to the same period last year. This product was known as Iran's brand in the world. It was considered one of the most valuable non-oil products in Iran. On average, it earned about 1,500,000,000 USD in foreign currency annually.

Reasons of decrease

Compared to the last six weeks, the price of Iranian pistachios and pistachio kernels for export has decreased in the world markets due to the increase in the exchange rate of foreign currencies against the Rial and the decrease in demand. The exchange rate of foreign currencies against the Rial has risen over the past six weeks due to the decrease in hopes for the revival of the 2015 nuclear agreement known as JCPOA and also the protests against the government in Iran. Also, export demands decreased due to these protests. The largest drop in demand and price compared to the last six weeks has been related to closed-mouth pistachios, which have dropped by 14 to15 percent. The cost of other pistachios and pistachio kernels has also fallen by 6 to 11 percent during this period.

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