On November 17, 2024, Morteza Haji-Aghamiri announced a staggering decline in Iran's carpet exports, which have plummeted from $426 million in 2017 to less than $40 million in 2023. This dramatic drop highlights the significant challenges facing the Iranian carpet industry, which has seen its global market share diminish considerably [255761e9].
India has now overtaken Iran in the global carpet market, capturing 44% of U.S. imports, further complicating Iran's position in this traditional sector. The Iranian share of the global hand-woven carpet export market has decreased from 25.5% in 2011 to just 7.4% in 2022. Factors contributing to this decline include stringent international sanctions, unfavorable currency policies, and particularly the foreign exchange repatriation policy, which has hampered the ability of exporters to access foreign currency [255761e9].
Additionally, competition from countries like Turkey and Afghanistan, along with the influx of smuggled Afghan carpets, has exacerbated the situation for Iranian producers. Approximately 80% of Iranian carpets are exported, with the top importers being the United States, Germany, the United Kingdom, and Japan [255761e9].
This decline in the carpet export sector reflects broader economic challenges within Iran, which are compounded by the ongoing issues related to oil revenue and the diversion of funds to brokers and middlemen, as reported earlier [d648d4de]. The Iranian economy continues to struggle under the weight of sanctions and mismanagement, affecting various industries, including the once-thriving carpet trade [255761e9][d648d4de].