1 kg saffron equals to 70 gm of gold as prices skyrocket amid West Asia tensions

One kilogram of saffron – the precious spice grown in parts of Jammu & Kashmir – is equivalent to 70 grams of gold in terms of their rupee value. This comes in the backdrop of a global shortage in saffron, as the ongoing tensions in West Asia has reportedly curbed the supplies from Iran.

India, apart from being a crucial producer of saffron owing to the spice grown in some pockets of J&K, is also its importer due to the high domestic demand.

This is equivalent to nearly seven times the price of 10 gram of gold, which hovered around the Rs 73,000-mark on May 10.

The newspaper, citing producers and traders, said the rates have gone up 20% in the wholesale market in recent days, whereas the surge has been sharper at around 27% in the retail market.

How much saffron is produced in J&K?

J&K, the only saffron producing region of India, has witnessed a slide in annual output due to various factors including unfavourable weather. The total production in fiscal year 2023-24 stood at 2.6 tonnes, which is 67.5% lower as compared to 8 tonnes in fiscal year 2010-11, as per the official data.

The spice, which has a global appeal due to its fragrance and subtle flavour, is grown mostly in Pampore of South Kashmir, along with some outer regions of Srinagar and Budgam in the Kashmir Valley, and parts of the mountainous Kishtwar region in Jammu.

In comparison, Iran produces around 430 tonnes of saffron per year, accounting for nearly 90% of the global production.