Clove Production Reduced by 30%, Leading to Price Surge in India
Clove Production Declines by 30% Due to Excessive Rainfall
According to market sources, clove production has dropped significantly this season, with output down by 30% following heavy rainfall across key clove-growing areas. The delayed harvest, which typically starts in September, has reduced the supply of fresh cloves, causing prices to rise to approximately $9,60–$10,10 per kg. Although around 35% of last year’s clove stock remains, it has not been enough to curb the price increase.Recently, prices have softened slightly to around $8,30–$8,45 per kg due to a dip in demand from weddings and local orders. However, market experts anticipate a renewed upward trend as demand increases.
Global Production Trends and Imports in India
India’s clove supply is largely dependent on imports from top-producing countries, including Zanzibar, Guatemala, Madagascar, and Indonesia. Each region has its own harvest season: Brazil’s crop arrives in November, Indonesia’s in December, and Madagascar’s from July to October. With annual clove consumption in India estimated at about 18,000 tonnes, these imports are essential for meeting demand across the spice market, religious traditions, and the pharmaceutical sector.This season’s late crop arrivals, coupled with limited stock from the previous year, have further tightened supplies. Market projections indicate that prices could increase by around $0,35–$0,50 per kg as demand for quality cloves grows ahead of the festive season.
Clove Prices in India
With production down, demand steady, and stock limited, clove prices are expected to increase in the months ahead. Given India’s reliance on imports from regions facing similar supply constraints, clove prices are likely to remain elevated. Consumers may see higher prices during the festive season, while suppliers anticipate continued volatility influenced by global weather patterns in clove-growing regions.Conclusion
India’s clove market faces a challenging season with reduced production and steady demand likely driving prices upward. For consumers, preparation for potential price increases is advisable, while suppliers may find opportunity amidst this tight market by focusing on efficient inventory management and exploring alternative sources where possible.Click here to reach our trading platfrom CMBroker
