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In the aftermath of the Pahalgam terror attack, an unexpected economic ripple has emerged from the Kashmir Valley — a dramatic surge in saffron prices. According to media reports, the price of saffron has crossed Rs 5 lakh per kg – equivalent to the price of 50 grams of gold. This is a sharp jump from the prices prior to the attack, when highest quality saffron ranged between Rs 4.25-4.50 lakh per kg.

This has happened after India shut down the Attari-Wagah border for trade in a retaliatory measure after the April 22 terror attack, which claimed 26 lives and was claimed by The Resistance Force, a proxy of Pakistan-based Lashkar-e-Taiba. The move has cut-off saffron imports from Afghanistan, triggering a sharp 10% price surge in four days.

Kashmiri saffron is one of the most sought-after and prized spices in the world, known for its deep aroma, colour, and high concentration of crocin. It is the only saffron in the world grown at an altitude of 1600-1800 metre above mean sea level.

However, the region produces just 6-7 tonnes of saffron annually, while the rest is imported from Afghanistan and Iran to cater to India’s demand of around 55 tonnes every year. While Afghan saffron is widely appreciated for its intense colour and aroma, Iranian saffron is commonly perceived as the less expensive option.

Silver lining for farmers?

According to a report by The Hindu, Kashmiri saffron is grown in Pulwama, Srinagar, Pampore, Budgam and Jammu’s Kishtwar region.

Kashmiri saffron was granted a Geographical Indication (GI) tag in 2020, a major boost to protect its authenticity. Since then, the government has tried to promote the spice under various schemes, including the National Saffron Mission. The GI tag has helped curb adulteration and improved branding for export purposes.

While the price surge is linked to a tragic incident, it spells some relief — and possibly a windfall — for thousands of Kashmiri farmers who depend on saffron cultivation for their livelihood. Years of low prices, market neglect, and competition from cheaper Iranian saffron had pushed many to consider alternative crops.

For long, Kashmiri saffron cultivators have complained of exploitation by middlemen, lack of market access, and counterfeit products flooding the market. The spike in prices — if sustained — could finally empower growers to demand fairer prices and direct market linkages.

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