Iran's handmade carpet industry has seen a sharp decline in sales

Iran's handmade carpet industry has seen a sharp decline in both exports and domestic sales due to US sanctions and the COVID-19 outbreak, Iran's Economy Online reported on September 7. According to the Tehran Handmade Carpet Industry Association, 90 percent of Iran's handmade carpet exports go to other countries. But exports have fallen sharply this year as US sanctions and the pandemic have made it extremely difficult to transport and collect foreign exchange. It also affects the domestic market. Sales of handmade carpets in Iran's domestic market have fallen 80 per cent this year due to rising costs, high inflation and reduced purchasing power. In this way, the cost of carpet production rises instead of falling. 85% of the production cost of handmade carpet is workers' wages and 15% is raw material costs. Due to inflation and exchange rate depreciation, the wages of workers and the cost of imported raw materials have increased, so the price of handmade carpet has not decreased.