Kohan Textile Journal – Editorial Desk
Iran’s Ministry of Industry, Mine and Trade (MIMT) has reported a significant 40% drop in upholstery fabric imports over the past year, marking a notable shift in the country’s furniture manufacturing supply chain. The decline follows policy adjustments aimed at supporting domestic textile producers and reducing reliance on foreign materials.
According to ministry officials, the reduction is part of a broader strategy that includes reviewing import restrictions on fabrics already produced domestically and increasing import tariffs from 20% to 32% for certain categories. The goal is to stimulate local production, strengthen the competitiveness of Iranian manufacturers, and address long-standing challenges in the furniture sector.
Boosting Domestic Production Amid Market Pressures
While the furniture industry has faced market stagnation and modest declines in production during the first quarter of the year, exports have managed to grow by 12%. The ministry has identified targeted demand stimulation and improved access to financing as critical steps to sustaining this growth.
Negotiations with banks are underway to provide working capital for furniture and related textile producers, particularly as many operate on installment-based sales and are vulnerable to liquidity shortages. Officials also acknowledged the impact of energy supply disruptions—particularly in electricity—which have limited production capacity in some industrial units to just four days per week.
Trade Policy and Exhibition Incentives
In addition to trade policy reforms, the Ministry has collaborated with the Iran International Exhibitions Company to offer discounted participation rates for manufacturers at industry events. The ongoing furniture industry exhibition, featuring over 100 domestic and international companies, has been positioned as a platform to encourage both domestic collaboration and export-oriented partnerships.
The National Furniture Industry Working Group has also been established, holding regular sessions to address operational challenges, review policy measures, and align industry stakeholders on strategies to boost competitiveness.
Outlook
The 40% decline in upholstery fabric imports signals a meaningful opportunity for Iran’s domestic textile producers to capture a larger share of the furniture industry’s supply chain. However, sustained progress will require consistent policy support, investment in quality and design innovation, and effective energy and logistics solutions.
