Supply setback sends saffron past Rs 5 lakh mark

Retail prices of top-grade saffron have surged over 10% to about ₹5 lakh per kilogram in the last four days following the closure of the Attari-Wagah border, which halted supplies of the world's most expensive spice from Afghanistan.

The price is comparable to 50 grams of gold, which is trading at ₹99,174 per 10 grams.

The government closed the Attari-Wagah border-the only land route allowed for trade with Pakistan -as part of a diplomatic crackdown on Islamabad after a terror attack in Pahalgam killed 26 tourists.


"Prices (of best quality saffron) hovered between ₹4.25 lakh and ₹4.50 lakh per kg before the Pahalgam carnage," said Nilesh Mehta, cofounder of Chennai-based Bell Saffron.

Iranian Saffron Up 5%
"Even the prices of Iranian saffron, which is cheaper than the Kashmir variety, have appreciated by 5%," said the cofounder of the 50-year-old company that sources saffron from Kashmir and markets it domestically.

India's annual demand for saffron - or kesar as it is known in Hindi - is about 55 tonnes, according to industry estimates. Kashmir produces 6-7 tonnes of saffron, while the rest is imported from Afghanistan and Iran.

While demand remains strong in southern and western India, northern buyers are pulling back, growers said.

"We are facing backlash from northern India (following the terror attacks) and many of our buyers are staying away," said Ferooz Ahmed, owner of Pampore-based Retaj Agro Farms, which cultivates saffron and dry fruits.

Umer Mukhtar, who owns Pulwama-based Mir Kashmir Saffron, concurred.

Most of the saffron consumed in India is used by traditional sweet makers. "May and June are busy months due to a number of wedding dates. The demand for saffron goes up during this period as it is used in sweets and in other cuisines," Ahmed said.

According to Sartaz Ahmad Shah, joint director (extension), agriculture, J&K, saffron is fetching Rs 3 lakh per kg in wholesale at India International Kashmir Saffron Trading Centre. "It's a good price," he said.

Production Hit
Meanwhile, erratic weather conditions have impacted saffron production in the valley, according to growers.

Senior trade officials, who did not wish to be named, blamed the new cement factories that have come up in Pampore for the fall in saffron production in the region. The saffron flowers are tender and wilt when cement dust falls on them, hurting the quality and quantity of saffron, they said.

Apart from Pampore district, saffron is grown in Budgam and on the periphery of Srinagar and the Kishtwar district of Jammu.

There are several types of saffron in Kashmir Valley. Mongra is the darkest and it is rich in aroma and flavour. The Lacha variety comes with red and yellow parts. Zarda, another type of saffron, is used in face packs, beauty creams among others.

Growing and harvesting saffron is labour-intensive. A gram of saffron comprises the filaments taken from around 160-180 flowers. The crop year starts from the middle of October and is over within a month.