Afghanistan Bets on ‘Red Gold’ to Boost Economy and Global Market Presence

KABUL, Nov 23 — As the saffron harvest season gets underway in Afghanistan, local traders are hopeful for better yields, sparking optimism that the precious spice, known locally as “red gold,” could help revive the country’s economy. Afghanistan, the world’s second-largest producer of saffron after Iran, is seeing a significant increase in production, with expectations of this year’s harvest surpassing 50 tons — nearly double that of the previous two years.

Saffron, the world’s most expensive spice, is sold for around $2,000 per kilogram, providing essential foreign currency to Afghanistan, where the economy has been severely impacted by US-imposed sanctions since the Taliban’s return to power in 2021. In June, Afghan saffron was once again named the world’s best by the Belgium-based International Taste Institute, marking the ninth consecutive year the country received this honor.

The surge in saffron production is a positive sign for Afghanistan’s economy, and both the government and the Afghanistan National Saffron Union (ANSU) are working to expand exports. Abdulsalam Jawad Akhundzada, spokesperson for the Ministry of Industry and Commerce, shared that Afghanistan exported around 46 tons of saffron in the first nine months of 2024, with expectations for that number to grow as the harvest continues.

Afghanistan’s dry climate, particularly in Herat, is ideal for saffron cultivation, and the province is responsible for producing 90% of the country’s saffron. In a move to further boost exports, Herat recently inaugurated its International Saffron Trade Center, designed to facilitate saffron trading in accordance with global standards.

Mohammad Ibrahim Adil, head of ANSU, highlighted that the new center aims to centralize processing and trade, offering a venue for farmers to market their saffron under optimal conditions. The union’s primary export markets include India, where saffron is a common culinary ingredient, and the GCC countries, particularly Saudi Arabia and the UAE.

The saffron industry not only contributes to the country’s economy but also plays a crucial role in supporting livelihoods, especially for women. According to the ANSU, about 95% of saffron workers are women, providing much-needed employment during the harvest and processing phases. In Herat alone, there are approximately 80-85 registered saffron companies, ranging from small businesses employing a few people to larger companies with up to 80 permanent staff.

Saffron production is labor-intensive, with each flower handpicked and its delicate orange stigmas carefully separated and dried. It takes roughly 440,000 stigmas to produce just one kilogram of the spice, making it a valuable commodity and an important part of Afghanistan’s economy.

Saffron exports are estimated to contribute around $100 million annually to Afghanistan’s economy, playing a significant role in stabilizing the country’s financial cycle. As the saffron harvest season continues, the hope is that the spice will continue to provide economic relief and improve Afghanistan’s presence in the global market.(Arabnews)