saffron price: In rare form, saffron worth king’s ransom: ‘Kesar’ prices soar up to Rs 4.95 lakh/kg in retail as Iran tensions weaken its exports of the spice
Prices of Indian saffron, which is cultivated in parts of Jammu and Kashmir, have increased by more than 20% at the wholesale level and about 27% in retail stores in the past month, producers and traders said.
The best quality Indian saffron is now selling for Rs 3.5-3.6 lakh a kg in the wholesale market, compared with Rs 2.8-3 lakh before the start of the latest strife in West Asia, they said. It can cost as high as Rs 4.95 lakh a kg in retail, or the price of nearly 70 grams of gold at Friday’s rate of Rs 72,633 for 10 grams.
Iran, with annual output of around 430 tonnes, accounts for 90% of the global production of saffron — known for its subtle flavour and used in food, cosmetics and medicines.
“Absence of Iran in the global markets has pushed up the Indian saffron prices. India also imports saffron from Iran. That too has trickled down after the geopolitical tensions started,” said Noor ul Amin Bin Khalik, owner of Amin-Bin-Khalik Co in Srinagar. “Prices are going up almost every day.” Kashmiri saffron, which received the Geographical Indication (GI) tag in 2020, is considered to be of superior quality. However, it’s not even producing 3 tonnes, less than a third of the output 13 years ago, against an annual demand of 60-65 tonnes. Nilesh P Mehta, cofounder of Chennaibased Bell Saffron, said he has never witnessed such a spike in saffron prices. Mehta’s family has been in the business for more than 50 years. “The Middle East tension, coupled with lower production, has impacted the prices of saffron… Also, the GI tag has made Indian saffron costlier in the world markets,” he said.Worries at home:
India ships saffron to the UAE, the US, Australia, Nepal and Canada.
A gram of kesar, as saffron is known in Hindi, comprises the filaments taken from 160-180 flowers. Growing the plants and harvesting is a labour-intensive process. Apart from Pampore district, saffron is also grown in Budgam and on the periphery of Srinagar and the Kishtwar district of Jammu. The crop year starts in October.
Production of saffron has been dwindling over the years. The Union Territory’s saffron output decreased from 8 tonnes in 2010-11 to 2.6 tonnes in 2023-24, a decline of about 67.5%, union agriculture and farmers welfare minister Arjun Munda said in February, citing estimates from the Office of Financial Commissioner (Revenue) of Jammu and Kashmir.
“However, during the past year, from 2022-23 to 2023-24, saffron production has marginally increased by 4%,” he had said.
Senior trade officials, who did not want to be named, blamed new cement factories that have come up in Pampore for the fall in saffron production in the region. Dust and pollution harm the delicate flowers, and the crop can no longer be grown in the vicinity — thus hurting both quantity and quality. Farmers in the surrounding areas have either sold their properties to these businesses or left them fallow, people in the trade said. Erratic weather conditions only exacerbate the worries.
There are several types of saffron available in the Kashmir valley, including Mongra, which is the darkest and rich in aroma and flavour. The Lacha variety comes with both red and yellow parts. Zarda, another type of saffron, is used in face packs, beauty creams and moisturisers.
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