- Shortage of saffron in the international market
- Poor production of saffron in Iran this year
- Low production expected to increase saffron prices
There is a shortage of saffron in the international market. One of the main reasons for this is the poor production of saffron in Iran this year. According to a Financial Times report, Iran is the world’s leading supplier of saffron as well as the prized spice, known for its aroma, flavor and color. The report shows that saffron production in Iran has decreased this year compared to 2022. Let us tell you that 90% of the world’s saffron supply comes from Iran, so less production may increase the price of saffron.
Due to this the crop got spoiled
The impact of changing weather is important for saffron traders and farmers. Mojtaba Payam-Asgari, chief of the ‘Torbat-e Jam’ saffron exchange, told the media that in previous years there were very low winter temperatures, but this year the crop has been negatively affected by the exceptional heat. Thousands of wells for irrigation have dried up making the situation critical. Experts have also warned of signs of climate change and how negative it could be for crops. Iranian meteorologist Mohammad Darwish said Iran could be more vulnerable than other countries, especially in arid and semi-arid regions, where saffron crops grow, and where rainfall is decreasing and temperatures are rising.
What will be the impact on India?
According to traders, the price of saffron has doubled since last year. Saffron is selling at 1400 dollars per kg in domestic market of Iran and 1800 dollars per kg abroad. Traders say many Chinese traders have pulled back due to high prices. Due to the low crop in the country this year, warehouses are empty, so they may face higher prices when they come again. India also buys large quantities of spices from Iran. The price increase in the domestic market will also affect the price of spices coming to India. This means that overall, we may see an increase in spice prices in the country in the near future.
