Iran’s ‘desert gold’ saffron industry is drying up due to climate change

Droughts are battering Iranian saffron fields: Iran, the world’s largest producer of saffron, is facing a crisis in its saffron industry as climate change and water shortages take a toll on its crocus fields in Torbat-e Jam, The Financial Times writes. The spice farmers are struggling to cope with the effects of changing weather patterns, which have brought freezing winters, dry springs, and scorching summers that have dried up all 2k surface water wells in the region.

Saffron supplies are dwindling: The total production of saffron is expected to fall to about 170 tons this year from nearly 400 tons last year, the report notes. The decline in supply has dramatically driven up the domestic and international prices of saffron, which is already the most expensive spice in the world. A kilo of premium saffron can cost up to USD 1.8k, according to suppliers.

Why is saffron so expensive? Saffron is a labor-intensive spice that requires hand picking and drying the stigmas of the crocus sativus flower — up to 170k flowers are needed to produce 1kg of saffron.

Demand is also dropping: Iran is struggling with an inflation rate above 40%. This has caused the domestic consumption of the spice, which accounts for about a quarter of annual production, to drop. The saffron industry is also suffering from the impact of US-led sanctions over Iran's nuclear programme, which has restricted its access to the global financial system and fuelled smuggling. China, which snaps up 45% of Iran’s saffron crop, has also reduced its imports due to the price surge.