Is saffron worth the price?

You can have all the saffron that is out there without paying much cost in energy, in terms of what was cost before saffron arrived in India. The cost is minimal because it is concentrated in small quantities which are easily extracted.

India needs only 2% of the total available production of saffron.

Why are we not using it?

Saffron was being used, but not in enough amounts to meet demand. The price has now plummeted, as it did when it first came into India. Because of the sudden decrease in price, there is a temptation to plant more saffron plants than the available. We need a large quantity of saffron, but we don’t make that available in enough quantities to meet the needs of the country.

How have the markets reacted?

There is a huge demand for saffron.

Is saffron worth the price?

Saffron is still priced very well. This is because of its small production, and it gets sold at the best prices.

Why are we not using it?

There has been a sharp drop in price. It is due to the sudden decrease in the supply in comparison to what it was last year.

What about India?

If there is no pressure of demand, then there will be no demand, so that would mean no demand for saffron. When the supply has dropped, prices have fallen and it has kept falling. We have only a small quantity of saffron available and it is too expensive to consume it at present. So, it would not be practical to produce more.

Why are we not using it?

It is very difficult to get enough. If we have more production than the required amount, but we lack the demand, we also can’t produce it because the prices have been dropped. But we will do it now when the supply of saffron is good enough. We had already asked for it.

What is the market price?

It is about R160.00 [$0.08/g] per kg, and we are expecting it to go down to about Rs90 by September 2015 when the market becomes fuller.

Why is it being taxed?

In order to make the demand for saffron, we had to tax at a rate of around 25%. We should be selling our saffron at less than this rate. The real reason for