Iran’s saffron boom: ‘Red Gold’ harvest forecast to double to 600 tons
By Sadeq Dehqan
Staff writer
Iran’s saffron production is forecast to more than double this year to around 600 tons, supported by improved weather conditions and expanded cultivation, the deputy head of Iran Saffron National Council said.
Gholamreza Miri told Iran Daily that output is expected to rebound sharply from about 220 tons last year, when production fell by 50% to 70% due to drought and water shortages that forced farmers in many rural areas to irrigate fields using tanker trucks.
Global saffron prices rose by about 20%, driven in part by reduced supply from Iran, the world’s leading producer, as well as regional tensions and air transport disruptions, he said.
Domestically, saffron prices have also increased alongside a weakening currency, although exporters have not yet fully passed on higher costs to overseas buyers, Miri said, adding that a further 20% rise in global prices is likely due to ongoing supply constraints.
Iran’s national currency has fallen to record lows amid mounting economic pressure. The rial weakened beyond 1.80 million per US dollar on the open market on Tuesday, compared with around 811,000 a year ago.
Miri, referring to statistical fluctuations in the country's saffron production, said that no precise production figures were announced last year by the Ministry of Agriculture, noting that such statistics are often influenced by various political and external factors. However, reports indicate that Iran's saffron production stood at approximately 420 to 450 tons two years ago, while last year saw a decline of 50% to 70%, bringing total output down to around 220 tons.
The official expressed optimism about the current crop, stressing that favorable rainfall has improved field conditions. “At this time last year, saffron fields had already turned yellow, but now in early May they are green and healthy,” he said, adding that cultivation areas have expanded and authorities are encouraging higher yields per hectare.
Average yields, which were about 6 kilograms per hectare three to four decades ago, have declined to around 3 kilograms in recent years. Plans are in place to raise productivity back to at least 6–8 kilograms per hectare, he said.
Miri attributed the long-term decline in yields to less specialized farming practices in the past, when many growers treated saffron cultivation as a secondary activity and relied on minimal irrigation, affecting flowering and output.
Saffron prices currently range between $1,500 and $2,000 per kilogram on global markets, he said. The highest-grade saffron, known as “Super Negin,” is priced at about 265 million rials per kilogram domestically, (equivalent to roughly $1,470).
Supply disruptions have been exacerbated by regional conflict, which has halted flights used for official exports. Countries in the Persian Gulf have also stopped direct purchases from Iran, similar to policies adopted by Saudi Arabia in recent years, though indirect trade continues via intermediaries.
As a result, many Iranian saffron producers, processors and exporters are operating at only about 10% of capacity, Miri said. Domestic consumption has declined due to inflation and economic pressures, while exporters are increasingly forced to route shipments through intermediary countries such as Turkey, Oman and Afghanistan.
“We hope that by easing tensions, exports will return to normal conditions as soon as possible,” he concluded.