Iran: Controls Needed for Rug Supply

London, England, May 1, 2006--Iran controls a major portion of the world’s hand-woven carpet supply, said a carpet industry official, adding, however, that the country does not have leverage over pricing mechanisms. According to Fars news agency, Mohammad Baqer Majd, Carpet Joint Stock Company’s commercial manager, told reporters that marketing of Persian rugs has increasingly become costly, stressing that carpet production has declined in some provinces. “For instance, in Markazi province, which is the cradle of hand-woven Persian rugs, there has been a significant decline in rug production,“ he said, calling for an investigation into the matter. Majd said Iran-made quality raw materials are smuggled to Afghanistan and Pakistan, adding that some Iranian weavers have to use polyester instead of natural wools. He said China, India and Pakistan sell carpets at low prices on the international markets. Iran has embarked on a series of publicity programs to advertise its fine Persian rugs internationally in view of the declining share of the country in the lucrative business over the past years. An Arab satellite TV channel will advertise fine Persian rugs. The Arab Tourism Channel (ATC) has taken photographs of world-famous Persian rugs as part of the groundbreaking project. A number of TV teasers have also been produced in the past few months and will soon be aired by ATC. Talks are also underway with a number of European TV channels on advertising Iranian rugs and carpets that have international fame despite competition from some emerging Asian carpet producers. It was also announced earlier that the palaces of Omani leader Sultan Qaboos bin Said would be adorned with fine Persian rugs. Iran exported $370.5 mln worth of fine rugs and carpets during March 2005-January 2006. Some 67% of the consignments went to Germany, the United States, the United Arab Emirates, Italy and Japan.

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