Why Clove Prices Are Expected to Rise?
The new crop of cloves is expected to arrive in 10-12 days. This, coupled with the arrival of the Komran Zanjiwar crop in October-November, is expected to drive up prices. In the international markets, cloves have increased significantly, and new goods are unavailable from Madagascar. Given these circumstances, the cost of cloves will likely increase.Â
The crop of cloves has come to an end in Komran Janjiwar. New cloves are arriving from Madagascar in the current month. There, the prices of new goods have started increasing by $100-110 per tonne after a gap of one week. Imports from Madagascar have become costlier due to the high prices in Indonesia, due to which the costs of Madagascar have increased.Â
In Madagascar and Indonesia, too, importers are telling the news of less arrival this time. Due to the shortage of old goods, new goods are now being loaded for domestic models.Â
Thus, the prospects for the clove market are good. The new crop is expected to arrive soon, and the prices will increase. This is due to several factors, including the low production of cloves in the producing countries, the high prices in the international markets, and the weak economy.
Low production in producing countries
According to the latest survey report, cloves are in short supply in countries like Zanzibar and Madagascar. Imports are expected to stay the same due to the poor crop in these producing countries. This is because the producers have reduced their production due to the low prices for two-three consecutive years.The crop of cloves has come to an end in Komran Janjiwar. New cloves are arriving from Madagascar in the current month. There, the prices of new goods have started increasing by $100-110 per tonne after a gap of one week. Imports from Madagascar have become costlier due to the high prices in Indonesia, due to which the costs of Madagascar have increased.Â
In Madagascar and Indonesia, too, importers are telling the news of less arrival this time. Due to the shortage of old goods, new goods are now being loaded for domestic models.Â
Future Trend
Due to the weak economy of the international markets, all the trade there has come to a standstill, and because of this, even the importing countries are not taking a stand towards it. On the other hand, Colombo's goods are coming less in the market due to the cost of imports. For the last 3 years, the business of long was also reduced due to loss to the traders in long. The old goods of importers have been sold out. Importers are also quoting inflated prices seeing the background score, due to which there is a suitable boom going forward.Thus, the prospects for the clove market are good. The new crop is expected to arrive soon, and the prices will increase. This is due to several factors, including the low production of cloves in the producing countries, the high prices in the international markets, and the weak economy.