Saffron Prices are reflecting the Effects of Drought in the Khorasan Region
The wholesale price of saffron in Iran increased by +183.09% YoY in W4 Mar-22 to USD 963.81/kg. Drought and labor issues became the driving factors of Iranian saffron price remains high in March 2022.
Saffron Price in Iran Skyrocketed by +183.09% YoY
The wholesale price of Iranian saffron has climbed by +183.09% YoY. The price in W2 Nov-21 while steady at USD 478.57/kg significantly rose to USD 1,180/kg in W2 Feb-22. Although the price gradually declined in W4 Mar-22 to USD 963.81/kg, the price remained high relative to the same period a year ago at USD 349.46/kg.
The Saffron industry in 2021 suffered from reduced production because of the drought coupled with labor shortages during the harvest season, which from October to November, led to much less output. Iran has been known as the largest exporter of saffron with more than 46% share in the global market as of 2020. The low supply domestically affected exports and so is the supply in the global market.
▶ Study proposal: Why is saffron so expensive?
The price of saffron in different world markets is determined according to various components. for example:
Type of saffron (there are different types of saffron)
Application of saffron
The amount of demand for saffron
Selling power and brand of the supplier company
Different sales and marketing methods
Supplier stores (Amazon, etc.)
and other reasons
The best and most economical way to buy exported saffron is direct purchase. There are various people and companies in the saffron buying and selling market.
But they are often distributors of saffron. They are so-called saffron brokers.
Tida saffron company is one of the activists in the field of saffron production and export.
In February 2022, Iran exported 19,067 kg of saffron valued at USD 20.13 million. This export volume is -33.77% YoY from the volumes exported at the same time in 2021 at 28,771 kg. In contrast, the export value rose by +42% YoY from USD 14.15 million in February 2021.
