From India To The Rest Of The World: Indian Saffron Market Booms, Prices Will Surprise You

Indian saffron is making waves in the market! Recent disruptions in West Asia have led to a decline in saffron imports from Iran. This shift has opened up opportunities for Indian saffron producers and traders. Prices for Indian saffron, mainly cultivated in parts of Jammu and Kashmir, have surged by over 20% in wholesale markets and approximately 27% in retail outlets over the past month. This change in dynamics is proving to be advantageous for Indian saffron businesses.

Rising Demand and Price Surge:

Premium Indian saffron (Kesar) is now priced between Rs 3.5-3.6 lakh per kg in wholesale markets, a notable increase from previous levels. Retail prices have also spiked, reaching as high as Rs 4.95 lakh per kg. With Iran traditionally dominating the market, its absence has created opportunities for Indian saffron. Saffron is highly valued for its subtle flavor and finds applications across various industries like food, cosmetics, and pharmaceuticals.

Challenges and Opportunities in Kashmiri Saffron Industry:

Despite being renowned for its quality and having obtained the Geographical Indication (GI) tag, Kashmiri saffron production has declined significantly over the past decade. Presently, output stands at less than 3 tonnes, down from 13 years ago. However, demand remains high at 60-65 tonnes annually. The Middle East tensions and reduced production have affected prices, while the GI tag has elevated Indian saffron's global standing.

Diversification and Export Potential:

Saffron production in the Union Territory has seen a notable decline, dropping from 8 tonnes in 2010-11 to 2.6 tonnes in 2023-24. However, there has been a slight uptick in production recently. The decline in Pampore region production is attributed to the emergence of new cement factories, which adversely affect saffron cultivation due to dust and pollution. Additionally, unpredictable weather conditions pose challenges for saffron farmers.

Use of Saffron:

The Kashmir valley boasts several saffron varieties, including Mongra, prized for its deep hue and rich fragrance. The Lacha variety contains both red and yellow components, while Zarda is utilized in various beauty products like face packs, creams, and moisturizers.