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Sadly the prices of Iran rugs are going up and only up. There are a number of factors which are causing this increase.
In Iran weaving is considered to be of low social status, poorly paid and physically demanding. With high inflation more and more weavers are seeking jobs elsewhere which bring a better income. Rug producers have to either pay more for their workers or end up with fewer rugs. In both cases they are likely to increase their prices to the trade buyer.
The high inflation has almost doubled the price of petrol since the beginning of the year which affects the logistical costs such as transport of rugs.
World prices for wool, cotton and silk have increased in price for several years. The number of sheep has declined in New Zealand forcing the price up and this is not helped by China buying much of the world's reserve of wool. Since the beginning of the year the wool price has gone up by 30%. Cotton used for the foundation of many rugs has increased in cost by 50% since the new year and quadrupled in the last two years. This has been primarily due to droughts and flooding resulting in poor harvests. An improved harvest should help.
The value of the rial against the euro has dropped since January mitigating the other increases. However, I have noticed that suppliers more often return from a buying trip to Iran saying that they had to look much much harder for rugs with the current prices and for some styles they have not purchased any.
The rug price has also increased in places like Afghanistan and Pakistan but does vary. Some my suppliers who have their own production seem to be fine but suppliers I have spoken to who buy from a variety of producers in say Pakistan have had more difficulty with the floods, inflation and demand for higher wages. Prices here have not risen to the same degree as Iran so I have purchased some stock from there to allow a good range of prices for my goods.
Back in 2007 in a more prosperous Europe we had become used to comparatively low rug prices against income. Oriental Rugs have now returned to a luxury item. However, prices are still reasonable for older stock.
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