"At the moment, carpet exports have nearly reached zero," Abdolrahman Tasmim Ghatee, head of the union of handicrafts sellers and handwoven carpet producers in Fars province, told the Iranian Labor News Agency (ILNA), a semi-official labor-focused news outlet.
He said exports, which once stood at close to $2.5 billion, had fallen to less than $50 million in recent years, with little trade now taking place.
Market slump hits producers
Tasmim Ghatee said around 90% of the sector depended on tourism, especially foreign visitors, but international tourism had largely dried up.
"Some shops do not make a single sale during the week because there are simply no buyers," he said. "After paying for food and daily expenses, people have nothing left to spend on decorative goods, handicrafts and carpets."
He said the market downturn had worsened after the war that began in late February between Iran, Israel and the United States, which disrupted trade and deepened economic uncertainty, even as a fragile ceasefire remains in place.