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
saffron supplies from Iran amid increasing geopolitical tensions in West Asia is benefitting Indian producers and traders of the spice, one of the costliest in the world.
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
