Kashmiri premium-quality saffron, one of the world’s most prized spices, is now selling at ₹340–₹350 per gram, up sharply from ₹200–₹250 per gram a year ago, according to traders quoted by businessline. The surge comes as the war in West Asia involving Iran, Israel, and the United States disrupts global supply chains and compounds a severe domestic production shortfall in Kashmir's saffron-growing belt.
Supply Disruption: Iran and Kashmir in Focus
Iran accounts for about 90 per cent of global saffron production, primarily from the northeastern Khorasan region. According to Abdul Majeed, president of the Saffron Growers Association in Pampore, prices for Iranian saffron have surged to ₹190–₹200 per gram, compared with normal levels of ₹150–₹160. “The combined impact of weaker local output and disrupted Iranian supplies had reduced availability in the market,” Majeed told businessline, adding that prices are likely to remain firm in the near future amid continued global supply chain uncertainty.
On the domestic front, Kashmir accounts for over 90 per cent of India’s saffron production, with most cultivation concentrated in the highland fields of Pampore. Official data from Jammu and Kashmir shows a volatile production trend:
| Year | Production (metric tonnes) |
|---|---|
| 2020–21 | 17.33 |
| 2021–22 | 14.87 |
| 2022–23 | 14.94 |
| 2023–24 | 23.53 |
| 2024–25 | 19.58 |
Despite a recovery to 23.53 metric tonnes in 2023–24, output fell again to 19.58 metric tonnes in 2024–25. Majeed said that last year’s harvest was just 5–10 per cent of normal levels, a decline he attributed to unfavourable weather and other local factors.
Grades and Price Differentials
Kashmiri saffron is sold in two main grades: Mongra, the premium all-red variety with strong aroma, and Lacha, which contains a small portion of yellow threads and commands a lower price. “The prices for both the grades have gone up, with Mongra selling ₹40–₹50 more than that of Lacha,” Majeed said. GI-tagged saffron has shot up to around ₹380 per gram.
Traders Navigate a Dual Market
Mohammad Ashraf, a saffron trader, noted that traders in the Valley also sell Iranian saffron because local production has declined significantly. “Disruptions in the global supply chain following the conflict have pushed up saffron prices across international markets,” he said.
Outlook: Firm Prices Ahead
With Iranian supply disrupted by the West Asia conflict and Kashmir’s own output well below historical averages, the saffron market is experiencing a pronounced supply squeeze. Both Majeed and Ashraf expect prices to stay elevated as long as geopolitical tensions persist and local production fails to recover. The next major data point will be the 2025–26 harvest in Kashmir, which will determine whether domestic supply can regain momentum.
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