A Spicy Twist: Clove Market Gains Momentum
A Dance of Supply and Demand
The prices of fresh cloves have increased for the past month, creating a buzz of anticipation. With Komran Zanzibar already completing 80% of its harvest, all eyes are now on Madagascar. The arrival of new goods from Madagascar has caused a surge in just one week. But wait, there's more! If the latest goods from Madagascar fail to arrive, we might witness a staggering increase shortly.The scent of cloves is wafting through the air as imports from countries like Zanzibar and Komran make a grand entrance. However, the failure of Madagascar's crop is throwing a wrench into the equation. Prices have shot up from $8,400 to $9,800 per tonne, leaving importers scrambling for supply. The main culprit behind the production decrease is the sluggish growth of clove plants over the past few years. The recent arrival of new cloves from Madagascar has temporarily alleviated the situation.
Price Hikes and Scarce Goods: A Complex Market
Despite a shortage of rupees in the markets, clove prices continue to climb due to limited availability. With Indonesia experiencing higher prices, imports from Madagascar for June-July have become costlier. The scarcity of goods has led to the disposal of old stocks, while shops (marketplaces) witness the sale of old goods for unknown reasons. Meanwhile, Pan Masala, Gutkha, and cigarette companies have secured their supplies through competitive procurement, ensuring a steady flow of goods.On the other hand, Importers from Madagascar and Indonesia are signaling a decrease in arrivals this time. Importers are now sourcing new goods from these producing countries at higher prices to meet domestic market demand. Considering these circumstances, it's clear that an increase in clove prices is on the horizon. The clove business has suffered losses over the past three years, making this resurgence a welcome sight. As importers sell off their old stocks, inflated prices create a vibrant and promising future for the clove market.Â