Iran’s ‘desert gold’ supplies running dry: FT
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The most expensive spice in the world could be running low on supply, triggering a spike in prices.
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An Iranian farm worker harvests saffron flowers just outside the city of Torbat Heydariyeh, southeastern Iran on October 31, 2016. (AP)
The global market is currently experiencing a saffron shortage, primarily attributed to a poor harvest in Iran, the world's largest supplier of this highly prized spice, as reported by the Financial Times on Tuesday.
Saffron, renowned for its exceptional aroma, distinctive flavor, and vibrant color, stands as the most expensive spice globally.
The report indicates that the saffron yield in Iran for the current year is anticipated to be less than half of the 2022 harvest. This is particularly significant, as Iran supplies over 90% of the world's saffron, contributing to concerns about the availability and pricing of this sought-after spice in international markets.
“Total production is expected to fall to about 170 metric tons from nearly 400 tons [last year],” Ali Shariati-Moghaddam, chief executive of Novin Saffron, a leading Iranian producer and exporter, told the news outlet.
Why is there a shortage of saffron?
Producers and traders attribute the shortage in saffron to shifting weather patterns and water shortages.
Mojtaba Payam-Asgari, the head of the Torbat-e Jam saffron exchange, pointed out that extremely low temperatures during the past winter, coupled with an exceptionally dry and hot spring and summer, had a severe impact on the crop. The predicament was exacerbated by the complete drying up of thousands of wells meant for irrigation.
Experts caution that the situation might deteriorate further due to climate change, which is disrupting traditional weather patterns. The combination of these factors poses a significant challenge to saffron production and underscores the vulnerability of this valuable spice to environmental fluctuations.
“Iran is more vulnerable than the global average, especially in arid and semi-arid areas [where saffron is grown]… Rainfall is declining, and evaporation and temperatures are soaring,” Mohammad Darvish, an Iranian environmentalist, told the news outlet.
Can we expect a hike in prices?
Last year, the price of saffron had already doubled, jumping to $1,400 per kilogram on Iran's domestic market and to $1,800 overseas, according to suppliers.
“Many Chinese dealers were shocked by the price surge and left. They’ll have to pay even higher prices if they come back because there’s very little crop and the warehouses are empty,” Payam-Asgari of the Torbat-e Jam exchange warned.
