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Saffron, often revered as "Red Gold," stands as the world's most luxurious and expensive spice by weight. Its significance in India transcends the culinary world, embedding itself deep within cultural traditions, religious rituals, and wellness practices. For centuries, its vibrant crimson threads have imparted a rich golden hue, a distinct aroma, and an exquisite flavour to everything from royal biryanis and festive sweets to medicinal concoctions. However, navigating the Indian saffron market can be a formidable task for any buyer. The price of saffron per kilogram can fluctuate dramatically, presenting a confusing landscape of varying qualities, origins, and grades.
This guide serves as a definitive resource for understanding the complexities of saffron pricing in India. It aims to demystify the market, providing a comprehensive analysis of the factors that dictate its value. By delving into current market rates, the nuances of different grades, the impact of geopolitical events, and the challenges of domestic production, this report will empower every buyer—from the home cook purchasing a single gram to the B2B professional procuring kilograms—to make informed, confident purchasing decisions. As a leading authority in the spice industry, Agroota is committed to providing the transparency and expertise necessary to navigate this intricate market.
The Indian saffron market is characterized by a wide price spectrum, reflecting the diverse quality and origins of the product available. Recent market dynamics, particularly supply chain disruptions, have introduced significant volatility, leading to notable price surges. Understanding the current pricing structure for both wholesale and retail quantities is the first step for any prospective buyer.
For businesses, chefs, and large-scale consumers, purchasing saffron in bulk offers significant cost advantages. However, the wholesale price per kilogram is not a single figure but a broad range dictated by quality, origin, and supplier scale. The market accommodates everything from lower-grade saffron used primarily for colouring to the most premium, all-red threads destined for gourmet kitchens.
Wholesale prices in India can range from as low as ₹42,000 per kg for Iranian Sargol grade to well over ₹3,00,000 per kg for the highest quality Kashmiri Mongra. Listings on B2B platforms showcase this diversity: Iranian Super Negin saffron can be found at approximately ₹1,90,000/kg, while premium Irani Mogra may command ₹1,30,000/kg. High-grade Kashmiri saffron consistently occupies the upper echelons of this range, with prices frequently cited around ₹3,00,000/kg and sometimes reaching ₹3,50,000/kg.
Recent geopolitical events have pushed these prices even higher. Following the closure of a key trade route, top-tier saffron prices surged past ₹5,00,000 per kg, a price point comparable to that of 50 grams of gold. International suppliers of premium Iranian saffron quote prices in the range of $2,900 to $3,000 per kilogram for the Indian market, which translates to approximately ₹2,40,000 to ₹2,50,000, aligning with the higher end of the domestic wholesale market for imported varieties. This vast range underscores the importance of understanding the specific grade and origin when evaluating a wholesale quote.
Note: Prices are indicative and subject to market fluctuations, supplier, and order volume.
For the average household consumer, saffron is typically purchased in small quantities of one to five grams. The retail price per gram is significantly higher than the pro-rata wholesale cost due to factors such as packaging, branding, marketing, and distribution overheads.
The retail price for one gram of saffron in India can span from a modest ₹100 to over ₹700. For instance, basic quality saffron might be available for ₹144-₹180 per gram, while mid-range options from reputable brands are often priced between ₹250 and ₹450 per gram. Premium offerings, especially high-grade Kashmiri or Iranian saffron, command higher prices. A one-gram pack of genuine Kashmiri saffron typically retails between ₹400 and ₹600, a benchmark that helps consumers identify authentic products. Premium branded saffron can even reach ₹660 per gram, reflecting superior quality, packaging, and brand trust. These prices highlight that in the retail space, consumers are paying not just for the spice itself, but for the assurance of quality and authenticity that comes with a trusted brand.
The country of origin is one of the most significant determinants of saffron's price. Each region produces saffron with distinct characteristics, and the market values them differently.
The price of saffron is not arbitrary; it is the result of a complex equation involving agricultural, economic, and geopolitical variables. Understanding these factors is essential for any buyer to appreciate the value of the spice and to make an informed purchasing decision.
The origin of saffron is paramount to its quality and price, with Kashmiri saffron holding a revered status. This premium is scientifically and legally justified. Cultivated at high altitudes between 1,600 and 1,800 meters above sea level, the unique agro-climatic conditions of the Kashmir valley contribute to its superior quality.
A key differentiator is its higher crocin content, which provides a more intense colour and is linked to its potent antioxidant and medicinal properties. This intrinsic quality is protected by a Geographical Indication (GI) tag. The GI tag is a legal certification that guarantees the saffron was grown and processed in Kashmir according to specific standards. For a buyer, this tag is more than just a label; it is an assurance of authenticity, a safeguard against adulteration with cheaper varieties, and a justification for its premium price.
Saffron is not a monolithic product. It is meticulously graded based on which part of the Crocus sativus flower's stigma is included. The stigma consists of a deep red tip, which contains the highest concentration of flavour, aroma, and colouring compounds, and a lighter yellow or white style, which has minimal culinary value. The proportion of red stigma to yellow style determines the grade and, consequently, the price.
The price of saffron in India is highly sensitive to supply chain stability and import policies. The market's heavy reliance on imports creates a structural vulnerability that can lead to sudden and sharp price increases. A recent example is the closure of the Attari-Wagah border following a terror attack, which immediately halted saffron supplies from Afghanistan. This single event triggered a supply shock, causing prices to surge by over 10% to more than ₹5 lakh per kilogram.
This incident reveals a critical dependency. With over 90% of India's saffron demand met by imports, primarily from Iran and Afghanistan, any disruption to these trade routes creates immense pressure on the remaining supply channels. In the wake of the border closure, the price of Iranian saffron, the main alternative, also increased by 5% as suppliers capitalized on the heightened demand. This demonstrates that the market's price stability is precariously balanced on fragile geopolitical relationships. For B2B clients like restaurants and food manufacturers, this volatility can severely impact operational costs and profit margins. It underscores the need for a strategic sourcing partner who can mitigate these risks through diversified sourcing, maintaining buffer stocks, and securing supply contracts.
Furthermore, government tariffs add a fixed cost to all imported saffron. Saffron imported into India is subject to a 30% Basic Customs Duty (BCD), along with a 10% Social Welfare Surcharge and other cesses, bringing the total effective import duty to over 36%. This duty is factored into the final price paid by consumers and businesses, ensuring that imported saffron has a significant baseline cost.
The high price of Kashmiri saffron is also a direct consequence of the severe challenges facing its cultivation. These issues explain why domestic production remains critically low, making the spice an inherently scarce and expensive commodity.
These compounding factors create a perfect storm that suppresses domestic supply, ensuring that the price of authentic Kashmiri saffron remains high. It is not just a luxury product; it is an agriculturally endangered one.
Navigating the saffron market requires a clear understanding of its grading system. The choice of grade directly impacts the price, flavour, and intensity of colour in your final application. This guide provides a practical overview of the most common grades available in India.
Mongra, also spelled Mogra, represents the zenith of saffron quality. It consists solely of the deep, crimson-red tips of the saffron stigma, which are carefully separated from the rest of the style. This grade contains the highest concentration of safranal (aroma), picrocrocin (flavour), and crocin (colour). Its aroma is potent and its flavour is rich and intense. Due to its superior quality and the meticulous labour required to produce it, Mongra is the most expensive grade. It is the preferred choice for gourmet culinary creations, such as authentic biryanis and rich desserts, as well as for therapeutic and medicinal purposes where maximum potency is desired.
Lacha is a high-quality grade that offers a more accessible price point than Mongra. It consists of the red stigmas with a small portion of the upper yellow style still attached. While the presence of the style slightly dilutes its potency compared to pure Mongra, Lacha still delivers excellent colour, a robust aroma, and a distinct flavour. It is a highly versatile and popular choice among chefs and home cooks for a wide range of dishes, including sweets, milk-based beverages, and savory preparations, providing a great balance between quality and cost.
Pushal, or Pushali, is the most economical grade of saffron that still contains the red stigma. This grade includes the entire stigma thread—the red tip, the orange middle, and the yellow/white tail. Because a significant portion of the thread is the less potent style, Pushal saffron has a milder flavour and aroma compared to Mongra or Lacha. However, it still imparts a beautiful golden-yellow colour to dishes. Its affordability makes it a practical choice for everyday cooking, large-scale catering, and industrial food production where colour is a primary objective and a subtle saffron note is sufficient.
When purchasing imported saffron, particularly from Iran, buyers will encounter different grading terms.
Whether you are buying a single gram or several kilograms, the principles of purchasing high-quality saffron remain the same: verify authenticity, choose a reliable supplier, and understand the best practices for storage.
The high price of saffron makes it a prime target for adulteration. Fake saffron is often made from dyed corn silk, safflower, or other vegetable fibers. Here is a simple checklist to help you identify the real thing:
For businesses, purchasing saffron involves considerations beyond just quality. Consistency, supply chain reliability, and transparent pricing are critical. Agroota offers comprehensive B2B solutions designed to meet the rigorous demands of the food service and manufacturing industries.
Proper storage is crucial to protect your investment in high-quality saffron. To preserve its delicate compounds, saffron should be stored in an airtight container, away from direct sunlight and moisture. A cool, dark cupboard or pantry is an ideal location. It should not be stored in the refrigerator, as the condensation can degrade its quality. When stored correctly, saffron can retain its peak flavour and aroma for up to two years and will remain potent for over three years.
The saffron market in India is a tale of two realities: a celebrated, ancient tradition of domestic cultivation struggling against modern challenges, and a heavy dependence on imports to satisfy a massive national appetite for the spice.
The heart of India's saffron production lies in the Kashmir valley, specifically in the town of Pampore and its surrounding plateaus. Known as the "saffron town of Kashmir," Pampore has been the center of saffron cultivation for centuries. The crop is deeply woven into the region's cultural and economic identity. The GI-tagged Kashmiri saffron grown here is a heritage product, prized globally for its unparalleled quality. However, as detailed earlier, this legacy is under threat from a confluence of environmental and economic pressures.
The stark reality of the Indian saffron market is its overwhelming reliance on foreign supply. India's annual demand for saffron is estimated to be between 55 and 70 tonnes. In contrast, the country's domestic production, almost entirely from Kashmir, hovers at a mere 6 to 7 tonnes per year. This creates a massive supply deficit of approximately 90%, which is filled by imports.
The two primary sources for these imports are Iran and Afghanistan. Iran, as the world's largest producer, is the most significant supplier to the Indian market. Afghan saffron also constitutes a substantial portion of imports. This heavy import dependency makes the Indian market highly susceptible to international price fluctuations, currency exchange rates, and, most critically, geopolitical instability in the supplying regions and along their trade routes.
The sale of saffron in India is governed by a clear regulatory framework designed to ensure consumer safety and standardize taxation.
ParameterFSSAI Standard for Whole SaffronFSSAI Standard for Saffron PowderExtraneous MatterNot more than 1.0% by weightShall be free from any extraneous matterFloral WasteNot more than 10.0% by weightShall be free from any floral wasteMoisture and Volatile MatterNot more than 12.0% by weightNot more than 10.0% by weightTotal Ash (on dry basis)Not more than 8.0% by weightNot more than 8.0% by weightAsh Insoluble in Dilute HCl (on dry basis)Not more than 1.5% by weightNot more than 1.5% by weightBitterness (Picrocrocine)Not less than 30.0 (absorbance at ~257 nm)Not less than 30.0 (absorbance at ~257 nm)Aroma (Safranal)20.0 to 50.0 (absorbance at ~330 nm)20.0 to 50.0 (absorbance at ~330 nm)Colouring Strength (Crocin)Not less than 80.0 (absorbance at ~440 nm)Not less than 80.0 (absorbance at ~440 nm)Total Nitrogen (on dry basis)Not more than 2.0% by weightNot more than 3.0% by weightCrude Fibre (on dry basis)Not more than 6.0% by weightNot more than 6.0% by weight
E-Tablolar'a aktar
Source: Food Safety and Standards (Food Products Standards and Food Additives) Regulations.
This table of official FSSAI standards provides objective, scientific benchmarks for quality. It moves the conversation beyond subjective marketing claims, empowering buyers with the knowledge to assess product quality based on measurable parameters. A commitment to meeting or exceeding these standards is a hallmark of a trustworthy supplier.
A "tola" is a traditional Indian unit of mass, now standardized to approximately 11.66 grams. The price of one tola of saffron is not fixed; it is calculated based on the retail price per gram for a specific quality. For example, if a high-quality Kashmiri saffron retails for ₹450 per gram, the price for one tola would be approximately ₹5,247 (11.66×450). The price can vary significantly from around ₹2,000 for a lower grade to over ₹6,000 for premium Mongra saffron.
The recent sharp increase in saffron prices is primarily due to a significant supply chain disruption. India closed the Attari-Wagah trade border, which is a key route for importing saffron from Afghanistan. This action created an immediate supply shortage in a market that relies on imports for about 90% of its needs. This scarcity, combined with ongoing domestic production challenges in Kashmir and strong consumer demand, has driven prices to record highs.
While it is theoretically possible to buy saffron directly from farmers, it presents several practical challenges for the average consumer or business. These include difficulties in verifying the authenticity and grade of the saffron without proper testing, a lack of standardized quality control, and logistical complexities in transportation and payment. Furthermore, supply can be inconsistent. Reputable suppliers and partners like Agroota add significant value by managing this entire process—from sourcing and quality assurance to secure warehousing and reliable distribution—to deliver a consistently high-quality, certified product at a fair market price.
In India, saffron is classified under the Harmonized System of Nomenclature (HSN) system, which is used for GST classification. The primary HSN code for all forms of saffron (stigma, stamen, powder) is 091020. Saffron attracts a Goods and Services Tax (GST) rate of 5%.
