According to an ET report, currently, the finest quality Indian saffron is being sold at Rs 3.5-3.6 lakh per kg in the wholesale market, up from Rs 2.8-3 lakh before the recent escalation of tensions in West Asia.
In retail, the price can reach as high as Rs 4.95 lakh per kg, which is equivalent to the cost of nearly 70 grams of gold based on Friday’s rate of Rs 72,633 for 10 grams.
Iran, which produces around 430 tonnes annually, is responsible for 90% of the world’s saffron production. The spice is renowned for its delicate flavor and is used in various applications, including food, cosmetics, and medicines.
Saffron Trade
Noor ul Amin Bin Khalik, owner of Amin-Bin-Khalik Co in Srinagar, told the financial daily, “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. Prices are going up almost every day.”
Despite being recognized for its superior quality and receiving the Geographical Indication (GI) tag in 2020, Kashmiri saffron production has declined significantly over the past 13 years. The current output is less than 3 tonnes, which is less than a third of the production 13 years ago, while the annual demand stands at 60-65 tonnes.
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Nilesh P Mehta, cofounder of Chennai-based Bell Saffron, whose family has been in the business for more than 50 years, commented, “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.”
Known as kesar in Hindi, India exports saffron to various countries including the UAE, the US, Australia, Nepal, and Canada. The production of saffron is a labor-intensive process, requiring the filaments from 160-180 flowers to make just one gram of the spice.
In addition to Pampore district, saffron is cultivated in Budgam, the outskirts of Srinagar, and the Kishtwar district of Jammu, with the crop year commencing in October.
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Over the years, saffron production in the Union Territory has experienced a significant decline. According to Arjun Munda, the union agriculture and farmers welfare minister, saffron output decreased from 8 tonnes in 2010-11 to 2.6 tonnes in 2023-24, representing a 67.5% reduction based on 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 added in February.
Senior trade officials, who wished to remain anonymous, attributed the decline in saffron production in the Pampore region to the establishment of new cement factories. The delicate flowers are adversely affected by dust and pollution, making it impossible to grow the crop in the surrounding areas, thereby impacting both the quantity and quality of the saffron produced.
As a result, farmers in the vicinity have either sold their land to these industries or left it uncultivated, according to people in the trade. Furthermore, unpredictable weather conditions only serve to exacerbate the concerns.
The Kashmir valley is home to several varieties of saffron, including Mongra, which is known for its deep color and rich aroma and flavor. The Lacha variety contains both red and yellow parts, while Zarda, another type of saffron, is used in face packs, beauty creams, and moisturizers.
Source Agencies
