At Rs 3,250/10 gm, Kashmiri saffron is now five times costlier than silver

The price of saffron in the Kashmir valley skyrocketed to Rs 3.25 lakh per kg from Rs 2 lakh per kg last year, after the golden crop received the GI tag

Saffron from Kashmir now costs about five times as much as silver, reported The Economic Times (ET). Costing about Rs 3,250, a 10 gm packet of saffron is equivalent to 47 gm of silver.

The price of saffron in the Kashmir valley skyrocketed to Rs 3.25 lakh per kg from Rs 2 lakh per kg last year, after the golden crop received the geographical indication (GI) tag. A GI tag is a sign used on products that have a specific geographical origin and possess qualities or a reputation due to that origin.

The tag has helped the domestic spice fight off competition in global markets from Iranian saffron, said the report.

Also Read: Kashmiri Saffron: Why is it so expensive, and how has the market revived?

Saffron trade on the rise

The golden crop, which enhances the flavour, colour, and aroma of biryani and many other dishes, is directing a comeback. Growers who had been witnessing a constant decline are now delighted by its enormous per-hectare production growth, it said.

"The only GI-tagged saffron in the entire world is found in Kashmir. The saffron trade with the US, Canada, and Europe has now begun," Choudhary Mohammad Iqbal, director of agriculture in Kashmir told ET.

"Trading is profitable, and farmers are receiving good prices for their harvest," he said.

Rehman Ahmed, owner of Dal Jheel Saffron Co in Kashmir’s saffron centre of Pampore said, "The GI tag has really helped saffron planters. Earlier, saffron farmers received between Rs 1.30 lakh and Rs 1.5 lakh per kg. Now, that has increased to between Rs 1.82 lakh and Rs 1.84 lakh per kg."

Iranian saffron trouble

The owner of Data Kesar, Irfan Kungwani, claimed that farmers occasionally neglect to take action to rejuvenate their crop, which lowers productivity. But Kashmir’s farmers have been able to overcome the challenge from the Iranian product, especially that posing as the real thing, he said.

According to Kungwani, Saffron from Iran has been creating a lot of trouble in the global markets for Indian saffron.

"It was being marketed as Kashmiri saffron. However, the GI tag has helped to stop Iranian saffron from being sold as Indian saffron," he added.