According to a report by the Financial Tribune on July 25, the Director of the Textile and Clothing Department of the Ministry of Industry, Mines and Trade of Iran stated that Iran exported clothing worth US$113 million in the 2020/21 fiscal year, which was Last fiscal year’s revenue of $59 million increased by 91.5%, and production increased by 25% year-on-year. Iraq, Afghanistan, Central Asian countries, and countries along the Persian Gulf are the main export destinations.
According to Nami, vice chairman of the Iranian Textile and Garment Production and Export Federation, Iran’s domestic demand for clothing is 510,000 tons, and the annual output is about 385,000 tons. Due to exchange rate fluctuations and changes in Iranian household expenditures, the industry’s turnover cannot be accurately calculated, but it is estimated to be approximately US$6-8 billion per year.
In 2018, in order to improve and manage the clothing market, Iran banned the import of clothing products. Smuggling is currently the biggest challenge facing the industry. Iran’s Anti-Smuggling Goods and Foreign Exchange Headquarters estimates that the annual value of clothing smuggling is about US$600 million. After the intensification of crackdowns, smuggled clothing has dropped from 90% of the domestic market to 20%, and 80% of clothing demand can be met through local production. However, the head of the Textile and Clothing Production and Export Alliance believes that due to insufficient data on tracking and detecting smuggled goods on the market, he believes that 1.8-2.5 billion US dollars of smuggled clothing enters Iran every year. Rising raw material prices and the depreciation of the Iranian rial against the U.S. dollar have made Iranian customers more willing to buy relatively cheap smuggled clothing. </p
