Is Saffron Now Costlier Than Gold? India-Pakistan Tensions Send Prices Soaring
In the aftermath of the Pahalgam terror attack in South Kashmir, escalating tensions between India and Pakistan have begun affecting trade ties, leading to a sharp surge in the price of saffron, the world's most expensive spice.
New Delhi: In the aftermath of the Pahalgam terror attack in South Kashmir, escalating tensions between India and Pakistan have begun affecting trade ties, leading to a sharp surge in the price of saffron, the world’s most expensive spice.
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Border Closure Hits Afghan Saffron Imports
Following India’s decision to shut down the Attari-Wagah border, saffron imports from Afghanistan have come to a halt. This move came after The Resistance Force (TRF), a proxy of Lashkar-e-Taiba, claimed responsibility for the deadly attack in Pahalgam.
As a result, the price of saffron in Indian markets has skyrocketed, crossing ₹5 lakh per kilogram. Industry sources report a 10% increase in saffron prices in just the past four days.
Saffron Now Costlier Than Gold
With one kilogram of saffron now equivalent to the price of 50 grams of gold, the current situation highlights the fragility of cross-border spice trade. Prior to the attack, saffron was trading between ₹4.25 lakh and ₹4.5 lakh per kg, according to Economic Times.
Kashmir’s Mongra Saffron in High Demand
India grows saffron in limited regions, especially in the cold climate of Kashmir. The three main varieties include:
- Mongra (Kashmir): Darkest in colour, highly aromatic, and most expensive.
- Lacha (Kashmir): Slightly lighter and less costly than Mongra.
- Pushal (Afghanistan/Iran): Thinner strands, more yellow, and cheaper.
With Afghan Pushal saffron supply disrupted, domestic demand has shifted to Kashmir’s Mongra and Lacha varieties, pushing prices further upward.
Economic Ripple Effects Expected
The price surge could have wider implications for the food, pharmaceutical, and cosmetics industries, all of which rely on saffron. The border closure and saffron price inflation also raise concerns about future trade restrictions amid ongoing political tensions.
As the diplomatic standoff continues, traders and consumers alike brace for more price volatility in the premium spice market.
