Kashmiri saffron, often referred to as "red gold," is one of the most valuable and sought-after spices in the world. India, particularly the Kashmir region, is a major producer and exporter of this precious commodity. In this article, we will explore the current state of Kashmiri saffron exports from India to the global market.
Overview of Kashmiri Saffron Exports
According to Volza's India Export data, Kashmiri saffron export shipments from India stood at 1.8K in recent years, exported by 84 Indian Exporters to 1,174 Buyers across the globe. The United States accounted for the maximum share with 339 shipments, followed by Australia with 260 and Singapore at the third spot.
The Kashmiri saffron is famous across the world, and Jammu and Kashmir is the second-largest producer in India. The state government aims to further boost saffron production with its new export policy, which shortlists over 60 countries where the demand for Kashmiri saffron is huge.
Key Export Destinations
Kashmiri saffron is exported to various countries worldwide, with the United States, Australia, Vietnam, Israel, and the United Arab Emirates being the top destinations in recent years.
United States: $137.60K worth of Kashmiri saffron exports, with 441 Kg shipped in 2021.
Australia: $128.18K worth of exports, with 1,696 Kg shipped in 2021.
Vietnam: $119.36K worth of exports, with 82 Kg shipped in 2021.
Israel: $86.18K worth of exports, with 13,346 Kg shipped in 2021.
United Arab Emirates: $81.38K worth of exports, with 366 Kg shipped in 2021
Geographical Indication (GI) Tag and Pricing
After receiving the Geographical Indication (GI) tag, symbolizing its exclusivity in the international market, the prices for Kashmiri saffron have grown tremendously. Earlier, it used to sell for around 60,000 rupees per kilogram, whereas now it fetches around Rs 2,50,000 per kilogram.
Export Policies and Initiatives
The Indian government has implemented new export policies to boost Kashmiri saffron exports. The Department of Agriculture, Kashmir, has shortlisted 60 countries where the demand for Kashmiri saffron is high. Within the next two months, the new export policy is expected to be implemented, providing a significant boost for the saffron growers of the valley.
The government has also identified other districts in Jammu and Kashmir where the land is suitable for saffron farming, aiming to secure the heritage crop and increase the cultivation area. The government hopes that with the new export policy, more people will take up saffron cultivation.
Export Data and Analysis
The Kashmiri saffron export data provides valuable insights for traders and exporters. The data covers information such as Bill of Entry date, HS code, Date of shipment, Product description, Indian Exporter name, port, value, and quantity of the product. Exporters can analyze the data to generate reports on top exporters, buyers, and countries of destination3. The data also allows for competitive analysis and identification of potential markets for Kashmiri saffron exports.
Challenges and Opportunities
Despite the growing demand for Kashmiri saffron globally, the area under saffron cultivation has shrunk from 5,000 hectares to 4,000 hectares in the last decade. Around 90% of the cultivation comes from the Pampore area of Pulwama district. One of the challenges faced by Kashmiri saffron exporters is the limited supply due to the shrinking cultivation area. However, the new export policies and initiatives by the government aim to address this issue by expanding cultivation to other suitable districts. The growing global demand for Kashmiri saffron presents significant opportunities for exporters. With the GI tag and the high quality of Kashmiri saffron, exporters can tap into premium markets and command higher prices. The new export policies and initiatives by the government also provide a supportive environment for Kashmiri saffron exports.
Conclusion
Kashmiri saffron is a valuable export commodity for India, with the United States, Australia, Vietnam, Israel, and the United Arab Emirates being the top destinations. The Geographical Indication (GI) tag and the high quality of Kashmiri saffron have led to a significant increase in prices, making it a lucrative export product.
Kashmiri Saffron Exports from India to the Global Market
