Saffron Is Outpacing Gold in India; Kashmir Sees a 10% Price Surge in Saffron Post Closure of Attari-Wagah Border for Trade: Report

For decades, Kashmir’s saffron farmers have toiled under the shadow of dwindling yields, climate change, and stiff competition from cheaper imports.

With Afghan imports disrupted and global demand soaring, saffron prices have skyrocketed, offering a windfall for Indian farmers, especially those in Kashmir.

As the world rediscovers the spice’s medicinal and culinary worth, India’s GI-tagged saffron is emerging as a premium, high-margin product. For Kashmir, this isn’t just good news—it’s a once-in-a-decade opportunity.

Pahalgam Terror Attack and Trade Disruption

The recent escalation in saffron prices can be traced back to the tragic Pahalgam terror attack in South Kashmir, which claimed 26 lives.

In response, India took decisive action by shutting down the Attari-Wagah border, effectively halting trade with Pakistan.

This closure disrupted the import of Afghan saffron, a significant player in the Indian market, leading to a sudden supply shortage.

Afghanistan, known for its Pushal variety of saffron, had been supplying a considerable portion of the spice to India. With the trade route severed, the market turned its attention to domestic sources, primarily Kashmir, to meet the demand.

Also Read:Indoor Saffron Farming: A Revenue & Cost Breakdown

Kashmir's Saffron: A Golden Opportunity

Kashmir's saffron, particularly the Mongra and Lacha varieties, is renowned for its deep crimson hue and potent flavour.

Unlike the lighter Pushal saffron from Afghanistan, Kashmiri saffron is cultivated at altitudes between 1,600 and 1,800 metres above sea level, contributing to its superior quality.

Before the border closure, the highest-quality saffron was priced between ₹4.25 lakh and ₹4.5 lakh per kilogram.

The sudden scarcity of Afghan imports has pushed prices up by 10% in just four days, reaching ₹6 lakh per kilogram in the wholesale market. This surge has turned the spotlight onto Kashmir, offering local farmers a chance to capitalise on the increased demand.

Also Read: The Many Uses of Saffron: How Different Industries Benefit from It

Economic Implications for Kashmiri Farmers

The price hike is a boon for Kashmiri saffron cultivators, who have long struggled with low yields and market competition.

With the current demand outpacing supply, farmers are experiencing better profit margins, encouraging investment in cultivation and infrastructure.

This economic upliftment is not just beneficial for individual farmers but also for the region's economy. Increased income can lead to better living standards, improved education, and enhanced community development in Kashmir.

Also Read: Nagpur Couple Invests Rs 15 Lakh To Grow Saffron At Home, Clock Rs 30 Lakh Revenue In FY25

Challenges and the Road Ahead

Despite the positive outlook, challenges remain. Kashmir's saffron production is limited, with the region producing only about six to seven metric tonnes annually.

To sustain and grow this industry, there is a need for modernisation in farming techniques, better storage facilities, and government support.

Moreover, the geopolitical situation remains volatile. Any further escalation could impact trade policies and market dynamics. Therefore, while the current scenario presents opportunities, it also calls for strategic planning and investment to ensure long-term benefits.

The unexpected rise in saffron prices, surpassing even gold, has brought a silver lining to Kashmir amidst geopolitical tensions.

This development underscores the importance of local agriculture and the potential it holds for regional prosperity.

With the right support and investment, Kashmir's saffron industry can not only meet domestic demand but also establish a stronger presence in the global market.

Also Read: The Rise of Indoor Saffron Farming: Saffron Cultivation in India, Different Varieties & Benefits