Saffron prices stagnant since six months

Saffron prices have been hovering between Rs 45,000 and Rs 50,000 per kg for the last six months, a decline of more than Rs 15,000 per kg from the same period last year.

Irrespective of meagre variations, prices remained more or less stagnant over the last six months as production was expected to be normal, a leading Mumbai-based trader said.

In the domestic market, saffron is currently sold at Rs 50 a gram in a packet of 1 gm, 2 gm and 4 gm apart from tola denominations. Saffron crop is in good condition and expected to produce good yield this year.

As there was good monsoon condition this year and least terrorism activities in J&K, normal saffron production was expected this year. Jammu & Kashmir (J&K) leads saffron production in India with Himachal Pradesh being the only other saffron producing centre in the country.

"The current decline in terrorist activities has brought the supply to normal level. Now, farmers, especially in Pulwama districts of Jammu & Kashmir, are showing renewed interest in saffron cultivation," the trader said.

Saffron - known as the Golden Condiment - is a legendary crop of J&K. The cultivation is mainly concentrated in the Pampore and adjoining areas occupying an area of 5,000 hectare, which is the largest area under cultivation in the world feeding 9,000 farming families.

The annual production of 155 quintals is generating an income of about Rs 100 crores at a conservation estate of Rs 400 per tola per family.

"The real production and consumption figures cannot be attained because the industry belongs to unorganised sector and they are afraid of giving details of crop and yield condition because of fears from terrorists," the trader added.

"Three years ago a large chunk of saffron harvested field was acquired unlawfully by terrorists that shook the entire supply chain, causing a tightness in the market," said a trader.

Today, despite having pre-crop month, the supply of saffron from J&K is normal owing to political normalcy.

"Indian families staying abroad import saffron in very small quantity through their kins and they often use it for medicinal purposes. But, there has been no exports or imports through official channel of saffron as of now", adds the trader.

"In turn, there has been imports of saffron in India through unofficial channel from Spain and Iran that hampers our trade." he added.

Imported saffron can not match the quality of Kashmir one as the later is recognised as the world class goods that India produces. Hence, Kashmir saffron in lower quantity is mixed up with that of imported goods and sold at cheaper rates in the local markets.

"As the general public has no idea of good quality saffron they buy whatever is available," said a trader.

"Of the budgeted expenditure of Rs 5,000 on household goods, hardly Rs 100 is spent on saffron. But, the trend is changing now," said the trader adding saffron consumption is closely linked with population and that is bound to increase in the future.

LOSING FLAVOUR

Three years ago a large chunk of saffron harvested field was acquired unlawfully by terrorists that shook the entire supply chain

The current decline in terrorist activities has brought the supply to normal level