November 9, 2021
The reason for the significant increase in saffron price?
When the plants are dormant, the violet king of flowers emerges. Cracks through the cold soil, and grows a magnificent purple blossom from the bulb that only blooms for forty days.
Farmers must pick saffron flowers before sunrise for forty days during October and November.
The region of Khorasan in Iran, on the border with Afghanistan, has charming saffron farms that produce 90% of the world’s saffron crop. with the remaining 10% distributed among other countries such as Morocco, Spain, Greece, Afghanistan, and India.
Therefore, the price of saffron is greatly affected by the climatic and economic conditions in Khorasan in particular. Because it produces most of the world’s saffron crop.
In this article, we summarize the reasons for the dramatic increase in saffron prices globally. In the harvest season for this year 2021.
Climatic conditions are the main reason for the high increase in Saffron price
The saffron flower is extremely sensitive to climatic conditions. A prolonged drought, rain, or snow during the harvest period, can have a significant, and direct and negative impact on the crop. Resulting in lower productivity.
Furthermore, the weather fluctuations that occurred in Iran during the harvest season of this year (2021) had a significant impact, resulting in a 50% decrease in productivity rate this year, compared to previous years, according to recent farmer statistics.
The cost of agricultural production contributed to raising in Saffron price
In addition, the expense of agricultural production has a significant impact on the price of saffron. As it demands intensive and unique care befitting a king’s flower. As the picking season lasts only forty days a year and only one blossom opens from each saffron bulb every day.
In stable weather conditions, the daily growth of the saffron flower from per bulb increases saffron productivity. Also, throughout the harvest period, it maintains its high quality with complete red threads within the natural growth of the bulb. Which contributes to the high price of saffron.
The increase in global demand for saffron also contributed to the increase in its price
Despite the fact that the global market has recovered from the effects of Covid-19, and the two-year closure.
As a result of the opening of borders, the resumption of global trade, and an increase in worldwide demand for saffron. This was followed by a decline in productivity, as we recently mentioned, the price of saffron has risen dramatically.
Fluctuation of the Iranian currency greatly affected the instability of the Saffron price
Since the original home of saffron is the region of Khurasan in Iran. Which accounts for 90 per cent of global saffron exports.
The fluctuation of the Iranian currency, and the instability of its price in the global trading market, has a significant impact on the saffron price. And its change is in line with the global market value of the Iranian currency.
All of these factors affect the price of saffron globally. And the market in Dubai and around the world reflects these changes. Particularly during the harvest season, which occurs at this time of year.