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Carpet exports this year only 1.2% of record high

November 19, 2021

A trade leader says the export market for Persian carpets is “dead” and that total exports this year will likely not even reach 1.2 percent of the record year for rug exports.

A member of the Tehran Chamber of Commerce, Industries, Mines and Agriculture, Razi Haji-Aqamiri, said the export of hand-woven carpets is not expected to exceed $20 million by Now Ruz, whereas $60 million worth of rugs were exported last year and the total neared $1.7 billion in the record high year.

“Exports of hand-woven carpets have been on a constant decline except for the early years after the Islamic Revolution, which is indicative of the fact that the policies employed by subsequent governments regarding the carpet industry have been the same,” he said.

“Such a neglectful approach is not restricted to carpets; it is evident in other non-oil products,” he said.

“You can’t replace markets such as those of the US and Europe with China and Malaysia over four, five or even 10 years. Persian carpets have been in the US and Europe for over 200 years. Furthermore, marketing for Persian carpets requires a great investment and these expenses are beyond the means of the private sector. The government should seek to create markets via a long-term advertising plan and strategy. The revival of lost markets is virtually impossible and the government doesn’t seem to be motivated enough to spend at the present juncture,” he said.

He stressed, “None of our governments has stuck to plans and laws for long, which is a deadly virus for the economy and exports in particular.

“At present, a handful of producers are in the business of making high-priced carpets; they are making sales to some extent, but generally there are no carpet exports. The export of Persian carpets is dead,” he declared.

Haji-Aqamiri acknowledged that the standing of Persian carpets has changed in the international market.  “Today, interior designers are less inclined to recommend decorating areas with hand-knotted rugs. “Carpet flooring is not as popular now as it was in the past. But it is important to account for a great share of this smaller market. Imagine that the total value of hand-woven carpet market is $3 billion; it is a huge difference between accounting for $2 billion of this market or $200 million. It is up to us to grab a higher share and not to hand over the market to rivals like Turkey, India and Pakistan.”

He concluded that sanctions have weakened the position of Persian carpets in the global markets and “customers have forgotten about us due to our absence from the market.”

While oil gets most of the attention in Iran, that industry does not employ many people.  But the carpet weaving industry has historically employed about 2.5 million people and is far more important than oil in terms of providing jobs.

As recently as 2017, Iran’s carpet exports totaled $436 million.  That was the last full year before the Trump sanctions were imposed.  In 2018, exports slumped to $238 million.  In 2019, they fell to $69 million.

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