Srinagar, May 3: Prices of Kashmiri saffron have more than doubled in the last one month.
From an average of ₹1.2 lakh per kilo, the prices have shot up to ₹2.38 lakh, with some premium sellers quoting up to ₹5 lakh a kilo.
The spike isn’t due to poor harvest or declining quality, but a perfect storm of sentiment and supply disruption. Following the recent terror attack in Pahalgam, farmers and traders in the Valley are holding onto their stock, releasing it only at steep premiums and to the highest bidders.
But there’s more at play. The shutdown of the Attari border amid geopolitical tensions has virtually halted saffron imports from Afghanistan, a key supplier to India’s mass-market saffron industry.
With Iranian saffron also facing restrictions, the spotlight has turned to Kashmir, which contributes less than 1% to global saffron output but holds the title of the most expensive saffron in the world.
CNBC-TV18 quoting Hans Sadhu, Founder & MD – K&M Agro Commodities, said: “The recent attack in Pahalgam has cast a shadow over the saffron trade in Kashmir. But what’s amplifying the spike in prices is the sharp drop in imports of saffron from Afghanistan due to the closure of the Attari border.
Due to geopolitical tensions and trade constraints, the annual demand of India, which is approximately 70 tonnes, has significantly shifted to Kashmiri Saffron, which is only produced up to 7-8 tonnes. Besides pushing the rates up, it also highlights the urgent need to strengthen and support our local supply chains and farmers.”
Globally, the saffron market is valued at over $600 million, with Iran producing over 90% of the world’s saffron. Kashmir’s contribution is small — around 2.6 metric tonnes as per the latest government estimates — but its quality and aroma give it unmatched premium value.
With demand far outpacing local supply, India’s dependence on imports is again under the scanner. The saffron rush, while beneficial for some traders and farmers in Kashmir, also reveals the fragility of the current supply chain.
As tensions linger and the festive season approaches, all eyes are now on how long Kashmir’s saffron boom will last — and whether it can sustainably meet the surge in demand.
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