Coll 28/41 ‘Persia. Trade Reports. Kerman 1924–’ [‎87r] (173/313)

Trade Report
of the Kerman Consular District for the year
ending 20th March 1932.
1. Trade.
_ (a) General conditions of Trade during the year
(imports and exports ).—The total value of imports
into Kerman for the year under review, given in
Appendix I, shows a decrease, as compared with
the previous year, of nearly a million krans. In
quantity however the decrease has been more than
33 per cent, but, owing to the substantial rise in
prices, the difference in value is not remarkable.
The imports by the Hindu traders during the
year were negligible because at the end of the pre
vious year they had already started winding up their
foil si ness owing to the .exchange difficulties. { The
Hindu traders who had established themselves in
Kerman for over a century and had handle 45 per
cent, of the Kerman import trade, prior to the estab
lishment of the Soviet Trade Representation, and
35 per cent, up to the time of the enforcement of the
new Monopoly Law, closed down altogether during
the year under report. Their places have been
taken by various local Parsi and Mussalman Yezdi
traders, who by the way do not grant to shopkeepers
the same facilities allowed by the British Indian
traders in the matter of payment on the instalment
system, etc.
Stocks were over-imported in the following lines,
viz. :—
Russian piece-goods, Woollen goods,
and Tea
during the year, whereas the actual consumption
may be estimated at about 50 per cent, of the pre
vious year.
The economic condition of the Province has gone
from bad to worse and the year ended with a con
siderable adverse balance in the general trade of
the country. Money has been none too plentiful
and the existing trade regulations have undoubtedly
had a detrimental effect on commerce in general.
The fluctuation in exchange rates has made the
position of the traders very uncertain. Increased
taxation has depleted the ready cash of the popula
tion and although prices of all imports connected
with the carpet trade have risen considerably, the
corresponding rates obtained from sale of the finished
article have not increased in proportion, the result
being that weavers have more or less been carrying
on their business at a substantial loss. It is of
course natural that credit, under such circumstances,
should be restricted.
The present burden of taxation under which the
country is labouring has the tendency to reduce trade
and impoverish the population.
(6) New items of trade .—No attempts were made
by traders in the province to embark on any new
lines during the year under review.
(c) New trade channels .—There has been a pro
posal to connect Bandar Abbas with Meshed, via
Jiruft, but no steps have so far been taken in the
matter. The Kerman-Bandar Abbas motor road
continued to remain'the main trade route and its
only competitor, the Kerman-Zahidan (Duzdab)
road, has lost its importance owing to railhead
having been removed from Zahidan to Nok Kundi,
a distance of 138 miles.
(d) Growth of foreign competition and danger to
British interests resulting therefrom .—Appendix II
shows the extent to which Russian trade has in
creased. This will now establish itself more firmly
as the result of the recent Russo-Persian Commercial
Treaty. There is a corresponding decrease in British
trade especially as the Russians are flooding the
market with cotton piece-goods the import of which
from the United Kingdom has fallen by about 60
per cent., as compared with the previous year. In '
1928-29 the figures w T ere seven times greater than
those in the year under review. Russia’s share
in the import of kerosene and petrol was one-fifth
of that of the Anglo-Persian Oil Company, as com
pared w r ith one-fourth and one-third respectively in
the year 1930-31. '
Germany’s share of the import trade has dropped
further. She has not been able to regain her
popularity as regards synthetic dyes, the import of
which shows a further decline as per Appendix I.
(e) The Russians—their trading methods — popu
larity—Success or failure .—The Russians, by their
system of barter, continue to take full advantage
of the foreign Trade Monopoly Law, the introduc
tion of which is detrimental to the import of goods
from other foreign countries. They have a competent i
Trade Representative in Kerman, who allow r s faci- *
lities to their local sales agent.
Nevertheless, great dissatisfaction exists among
the public on account of the unusual rise in the
prices of Russian sugar and matches.
At the time of writing Java and Belgian sugar have
practically disappeared from the Kerman Province.
(/) Credit offered by foreign firms as opposed to
those granted by British firms .—As the result of the
new Trade Monopoly Law r and the Exchange Control
Regulations, which have wrought great changes in
trade conditions, the actual credit formally offered
by foreign firms abroad does not appear to be as
important as it used to be. In fact the only credit
iuducive to trade at present is local. This also has