The price of saffron will be increased by 100%

These days, the issue of saffron pricing is hot in Iran. With the start of the new saffron harvest season, the issue of determining the price of saffron has received too much attention. The problems and concerns of farmers in the last one or two years have caused the members of the Iranian Parliament, the Saffron Union and the National Saffron Council to intervene in pricing. In the recent meeting of these representatives, the price of saffron for the new season was determined as follows:

Saffron flower: 150,000 Toman per kg (Almost 200% growth over the previous year)
Negin = 20,000,000 Toman per kg (Almost 100% growth over the previous year)
Pushal = 16,000,000 Toman per Kg (Almost 100% growth over the previous year)

To achieve this, the committee approved the provision of 1,000 billion tomans in facilities to saffron exporters and saffron farmers. But the important question is to what extent this event affects the price of saffron in the market?

Assuming all the facilities are paid quickly. For Negin, in the best case with new prices, They can buy 50 tons of saffron. Equivalent to 10% of saffron produced in Iran. Which has no significant effect in the long run. But in the short term, we expect to see a 10 to 20 percent price increase over the next two months. And after that, with the adjustment of the market, an increase of 5 to 10% compared to now is expected.