Saffron prices soar to unprecedented ₹5L/kg: Here we decode why
What's the story
The recent terror attack in Jammu and Kashmir has sent saffron prices in India soaring, touching an unprecedented ₹5 lakh per kilogram. The surge is almost equal to the price of 50g of gold.
The price hike comes as the Indian government decided to stop trade through the Attari-Wagah border, effectively halting saffron imports from Afghanistan.
The move has led to a whopping 10% price rise in just four days.
Disruption
Afghan saffron shipments halted
Retailers and wholesalers are now experiencing extreme supply stress, especially for high-quality saffron which used to come into India via the now-closed land route with Pakistan.
The disruption has greatly affected India's saffron market as the country consumes an estimated 55 tons of saffron annually.
Price increase
Iranian saffron prices also rise
While some saffron consumed in India is sourced from Kashmir, a large portion is imported from Iran and Afghanistan.
Afghan saffron is especially sought after for its bright color and fragrance, while Iranian saffron is a more economical choice.
However, with the supply from Afghanistan now affected, prices of Iranian saffron have also increased by 5%, The Economic Times reported.
Market impact
Market dynamics and potential price hikes
The saffron market generally provides three key varieties: Mongra (Kashmiri), Lacha (Kashmiri), and Pushal (Afghan, Iranian). The present scenario is especially critical as local harvests from Kashmir peak only in late autumn. This could further push prices up during the forthcoming wedding and festive season.