Iranian Saffron

Saffron; Predicting a Decrease in Iranian Saffron Production and an Increase in Demand From Foreign Customers

Mintec Global
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The area under saffron cultivation has decreased by about 20 percent in Iran compared to last year. In addition to the increase in demand, this issue has also caused the price of this product to grow in the world markets. Its price will increase during the harvest season. Currently, saffron cultivation is not economically beneficial for Iranian farmers. Therefore, every year the cultivation area of ​​this strategic crop becomes less than the previous year.

The prediction of a decrease in Iranian saffron production has increased the demand of foreign customers for this product. The demand for this product has risen due to the 20 percent decrease in the area under saffron cultivation this year compared to the previous year. This issue has caused saffron to be sold at a higher price. Its price will be higher in the harvest season and closer to the world price. Saffron is one of the critical export products of Iran, which has played an essential role in increasing non-oil exports. It also imports foreign currency. Agricultural production costs have increased at all levels, particularly the costs of harvesting and processing saffron, which is an exhausting task. However, unlike other commodities, saffron has had a slight price increase, and achieving the actual price is far-reaching.

If the costs of planting, growing, and harvesting saffron is calculated carefully, then the result shows that saffron cultivation is not economically beneficial for Iranian farmers. Therefore the annual cultivation level of this strategic product is lower than the previous year. If the saffron rises to its actual price, the farmer will be happy with the price increase, employment will be maintained, and the farmer will continue his production with additional motivation. So, the smuggling of this crop and the huge profits made by dealers will be prevented.

A large volume of Iranian saffron leaves Iran in bulk, is packaged in neighboring countries, and enters the world markets under their name due to the difference between the price of Iranian saffron and its global price, as well as restrictive export rules. An increase in exports, that is, non-oil exports is a sign of a healthy and dynamic economy. Saffron’s habitat is Iran. As much as the export of saffron increases, the opportunity to be present in the world markets will be expanded. The result of this issue is stable incomes.

Compared to last month, the price of Iranian saffron for export has decreased, the most significant reason for which is the increase in the exchange rate of the Dollar against the Rial. Another reason for the decrease in the price of this crop is the demand reduction, which is due to the Eid al-Adha holiday in many Islamic countries, especially the United Arab Emirates and Turkey.



TypeGrade $ Price€ Price
NeginPremium Grade13481327
All Red(Sargol)Premium Grade11711152
PoushalPremium Grade11671149

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