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The Saffron Industry in Iran Faces Challenges Due to the Climate Crisis

The city of Torbat-e Jam is known for its number one export: saffron. However, this year, the saffron industry is grappling with a disaster, as changing weather patterns and water shortages take a toll on the precious spice.

More than 90% of the world’s saffron originates from Iran, earning it the moniker “desert gold” due to its resilience in arid climates and its prized aroma, flavor, and color. Yet, the impact of climate change, with shifting weather patterns and water scarcity, has led to a drastic reduction in saffron production.

According to Ali Shariati-Moghaddam, CEO of Novin Saffron, a leading Iranian producer, this year’s total saffron production in the Khorasan region is anticipated to be less than half of the 2022 figures, dropping from nearly 400 tonnes to around 170 tonnes. Mojtaba Payam-Asgari, a director at the Torbat-e Jam saffron exchange, explained that a freezing winter followed by a dry spring and scorching summer temperatures reaching 50°C had a devastating impact on the region, causing local surface wells to dry up.

Environmental experts like Mohammad Darvish highlight that such extreme conditions are not isolated incidents but are indicative of the broader impact of Climate change on weather patterns globally. Iran, particularly in arid and semi-arid areas where saffron is cultivated, faces heightened vulnerability due to declining rainfall and soaring temperatures.

The repercussions are not limited to the agricultural sector alone. The price of premium saffron has surged to $1,400 per kilo domestically and $1,800 overseas, doubling from the previous year. This has significant implications for domestic consumption, especially as Iran grapples with an inflation rate exceeding 40%, leading to a reported 50% drop in saffron sales.

Saffron, a staple in Persian cuisine, is also valued for its potential medicinal properties and various applications in cosmetics and perfumes. However, the labor-intensive nature of its harvest, requiring up to 170,000 flowers to produce just 1kg of saffron, contributes to its high market price.

Iran’s saffron industry has witnessed growth in recent decades, with the introduction of international quality standards, the establishment of a saffron exchange, a futures market, and an investment fund. However, the current crisis adds to the challenges faced by the country, including runaway inflation and the impact of Western sanctions. Moreover, concerns are raised about an illicit saffron trade fueled by US-led sanctions and limited access to the global financial system. Gholamreza Miri, head of Khorasan Razavi Saffron Exporters Union, points out that smugglers are selling Iranian saffron at lower rates to other countries, where it is rebranded and sold as their own.

As soaring prices affect exports, including to China, which purchases 45% of Iran’s saffron crop, the saffron industry faces a complex and uncertain future. For the approximately 100,000 families relying on saffron cultivation in desert regions like Khorasan, the situation has become critical, prompting calls for government intervention to protect their livelihoods. The future of Iran’s “desert gold” hangs in the balance.