Surge in Saffron Prices
Saffron prices have increased by over 10% to approximately ₹5 lakh per kilogram due to the closure of the Attari-Wagah border, halting supplies from Afghanistan. This price rise is significant, with saffron now priced comparably to 50 grams of gold.
Impact of Border Closure
- The Attari-Wagah border closure is a diplomatic response to a terror attack in Pahalgam.
- Prior to the attack, saffron prices ranged between ₹4.25 lakh and ₹4.50 lakh per kg.
- Iranian saffron, cheaper than Kashmir's, saw a 5% price increase.
India's Saffron Demand
- Annual demand for saffron in India is about 55 tonnes.
- Kashmir produces 6-7 tonnes, with the remainder imported from Afghanistan and Iran.
- Demand is strong in southern and western India but declining in the north.
Market Dynamics
Most saffron consumed in India is used in traditional sweets, with peak demand during wedding seasons in May and June.
Wholesale Pricing
Saffron is fetching ₹3 lakh per kg wholesale at the India International Kashmir Saffron Trading Centre, considered a favorable price.
Impact of Weather and Pollution
- Erratic weather and cement dust from new factories in Pampore affect saffron production.
- Saffron flowers are sensitive and wilt when exposed to cement dust.
Types of Saffron
- Mongra: Darkest, rich in aroma and flavor.
- Lacha: Contains red and yellow parts.
- Zarda: Used in beauty products.
Labour-Intensive Cultivation
Saffron cultivation is labor-intensive, with one gram sourced from 160-180 flowers. The crop year spans from mid-October to November.
