Prices increase by over 30 percent, expected to go further high
Srinagar: Kashmir’s famed saffron, known globally for its superior quality, aroma, and colouring properties, has witnessed a significant rise in prices over the past year. Growers and traders attribute the surge to a combination of geopolitical tensions in West Asia, particularly involving Iran, and a steep decline in local saffron production caused by adverse weather conditions.
According to traders, premium GI-tagged Kashmiri saffron is currently fetching around Rs 350-400 per gram, compared to nearly Rs 200-250 per gram during the same period last year. Non-GI saffron has also recorded a substantial increase, with prices rising from approximately Rs 200 per gram to around 300 per gram. The sharp increase has been driven by reduced availability in both domestic and international markets, coupled with sustained demand for high-quality saffron.
Industry experts told the news agency—Kashmir News Observer (KNO) that the conflict and instability involving Iran have significantly affected the global saffron trade. Iran accounts for nearly 90 per cent of global saffron production, making it the world’s largest producer and exporter of the spice. Any disruption in Iranian supplies has an immediate impact on international markets, pushing prices upward across major saffron-producing and consuming regions, they said.
The situation has had a direct effect on Kashmir, where traders also rely on Iranian saffron to meet market demand. With supplies from Iran becoming uncertain and international supply chains facing disruptions, saffron prices have surged globally, benefiting markets where stocks remain available.
However, despite the rise in prices, many saffron growers in Kashmir have been unable to fully capitalise on the trend due to poor production during the previous harvesting season. Farmers say saffron output was significantly lower than normal, leaving them with limited stocks to sell at the current elevated rates.
Growers from Pampore and adjoining saffron-producing areas of Pulwama district said the decline in production was largely caused by unpredictable weather conditions. Saffron cultivation is highly sensitive to climatic changes, and irregular rainfall patterns, prolonged dry spells, and fluctuations in temperature have adversely affected flowering and yield in recent years.
Farmers acknowledged that the government has undertaken several initiatives, including improved irrigation facilities and infrastructure development under the National Saffron Mission, to boost production and revive the sector. However, they stressed that weather-related challenges continue to undermine these efforts and remain one of the biggest threats to sustainable saffron cultivation in the Valley.
Mohammad Shafi Ganaie, a trader from Anantnag, said that prices have gone up in recent months and are expected to go up further.
“There is low production in Kashmir now, and the escalation in Iran has further added to it,” he said.
Kashmir accounts for more than 90 per cent of India’s saffron production, with the crop mainly cultivated in the highland fields of Pampore, often referred to as the “Saffron Town of Kashmir”. The spice enjoys a premium position in both domestic and international markets and received the prestigious Geographical Indication (GI) tag in 2020, strengthening its identity and protecting it from counterfeit products.
Kashmiri saffron is primarily sold in two major grades. Mongra, considered the finest quality, consists entirely of deep red stigmas and is valued for its intense aroma, vibrant colour, and high crocin content. Lacha, another popular variety, contains a small portion of yellow styles along with red threads and is generally sold at comparatively lower prices.
Traders say prices of both grades have risen considerably, with Mongra continuing to command a premium over Lacha.
Data from the agriculture sector indicates that saffron production in Jammu and Kashmir has fluctuated considerably over the past few years. While output showed improvement during certain seasons, production declined sharply again due to unfavourable weather conditions, resulting in lower market availability.
Official data also shows that land under saffron cultivation has shrunk from 5,707 hectares in 1996–97 to 2,387 hectares in 2019–20— a 65% reduction and production fell from 17.33 MT in 2021 to 14.87 MT in 2022, and marginally improved to 14.94 MT in 2023, but in year 2024 real output was only around 30% of expected production while it was just 10 percent in 2025.
Traders and industry stakeholders believe saffron prices are likely to remain strong in the coming months if tensions in West Asia persist and local production does not recover substantially. The market is currently experiencing a rare situation where constrained global supplies and weak domestic output have combined to push prices to record levels. While the price surge highlights the growing value of Kashmir’s prized spice, many growers remain unable to reap its full benefits due to the limited harvest they secured last season—(KNO)
