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    Saffron prices down 15% on high imports, weak demand

    Synopsis

    It is currently being quoted at Rs 130-150 a gram in the wholesale market, and is expected to drop further as the new harvest is expected in two weeks, industry executives said.

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    NEW DELHI: The price of saffron has fallen 15% in the past two months because of higher imports from Iran and weak demand.

    It is currently being quoted at Rs 130-150 a gram in the wholesale market, and is expected to drop further as the new harvest is expected in two weeks, industry executives said.

    “Domestic demand from retailers, sweet manufacturers, food processors and ayurvedic companies is less this year and we have huge stocks of the previous year lying with us,” said Abdul Majid Wani, president of the Saffron Farmer’s Association. He said traders have imported huge quantities from Iran, weakening prices.

    Wani said that the annual demand for saffron in India is 55 tonnes per year, with domestic output at 6-7 tonnes. Iran was the leading supplier, followed by Afghanistan.

    “There is 30% less demand for saffron this year. The onset of winters may help increase the demand by the Ayurvedic firms. However, the prices will remain weak as imported saffron from Iran is 50% cheaper compared with Kashmiri mogra at ₹130-150 a gram,” said Ram Bharat, director, Patanjali Ayurveda.

    Sweets and namkeen brands were waiting for the price trend to emerge, said Naresh Saklani, GM- purchase at Bikanervala Foods. “Compared with last year, the demand for sweets continues to remain lower by 30%. The new saffron crop will be harvested by then and we will have better clarity by mid-October,” he said.
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    1 Comment on this Story

    Aashiruddin Shahnawaaz114 days ago
    This should certainly rank as one of the worst articles by Mr. Swaminathan. His comments on policy & economy are typically spot on. In this case he is running false narratives. It is not the farmers who will get a better price by cutting out middlemen but the corporations who will get it. Even currently the farmers can sell their produce outside Mandis infact a vast majority do. However, with this law Mandis will slowly cease to exist and MSP with it.
    Another laughable point Mr. Aiyar makes is w.r.t groups of farmers striking a contract with agro processors. We all know what happened to the unions, we have enough of IR cases. A final ludicrous comment is the support of the repeal of parts of the Essential Commodities act. Warehouses are built by middlemen/ corporations & not farmers. If a capitalist invests in a warehouse, stores (hoards) seasonal produce and sells it after creating shortage, who gains ? The farmer or the capitalist ?
    This will lead to a situation where investing in warehouses would be better than investing in farms. Apologies Mr. Aiyar, but this was a bad piece by you. Maybe it is one of your off days.
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