Iran’s textile industry has long been struggling with numerous challenges — from outdated machinery and insufficient investment in modern technologies to smuggling and uncontrolled imports of apparel. Yet among all these issues, the massive and uncontrolled import of fabrics through southern maritime routes has emerged as the most critical threat to the survival and competitiveness of the domestic textile sector.
Fabric Imports Soar via “Dhow and Sailor” Routes
According to official reports, the volume of imports through the so-called “dhow and sailor routes” (Teh-Lenji and Malvani) has grown dramatically in recent years, rising from around US$2 billion to nearly US$5 billion. Alarmingly, a significant share of these imports consists of fabrics and apparel — products that Iranian manufacturers are fully capable of producing.
One Dhow = Two Months of Factory Production
The harsh reality is that a single dhow today can bring in fabric equal to two months of production at a textile factory, all without paying customs duties or tariffs. This situation not only undermines local manufacturers but also kills the incentive for investment and modernization in the industry.
At the same time, contradictory trade policies deepen the crisis. While industry stakeholders have consistently demanded higher tariffs on fabric imports and easier access to foreign currency for machinery imports, the actual market situation paints the opposite picture: fabrics flow easily into the country, while textile machinery remains stuck behind bureaucratic barriers.
Worrying Figures
A review of fabric import trends over the past decade reveals the depth of the crisis:
- 2020 (1400): approx. US$500 million
- 2021 (1401): approx. US$650 million
- 2022 (1402): approx. US$824 million
- 2023 (1403): nearly US$950 million
This steep growth has occurred even though household demand for apparel and textiles has remained largely unchanged. In other words, excess imports have only oversaturated the market while crushing domestic producers.
Forgotten Modernization
Survival of Iran’s textile sector hinges on constant modernization of machinery. Yet, in 2023, only around US$400 million worth of foreign currency was allocated for textile equipment imports — far below actual industry needs. The imbalance between the rising import of fabrics and the insufficient modernization of production lines threatens to erode the country’s manufacturing base and fuel further dependence on imports and smuggling.
An Industry on the Brink
If current trends persist, Iran may soon witness the gradual shutdown of its textile factories — facilities that provide tens of thousands of jobs and sustain thousands of families. Uncontrolled fabric imports not only destabilize domestic production but also weaken the competitiveness of Iranian apparel against foreign brands.
What Must Be Done?
The solutions are clear:
- Impose strict limits on fabric imports through “dhow and sailor” routes using tariffs and tighter supervision.
- Redirect foreign currency allocations from fabric imports to textile machinery imports for urgent modernization.
- Reform customs valuation practices to prevent abuse of tariff classifications.
Ensure transparency throughout the textile value chain, from raw materials to finished goods.
Conclusion
Iran’s textile industry still holds the potential to serve as a key driver of employment and non-oil exports. But uncontrolled imports and inconsistent policies are turning that potential into a looming threat. Unless decisive action is taken today, tomorrow it may be too late to speak of support or modernization. Time is running out — the moment for action is now.
