Clove Prices Soar as Global Production Declines
Heavy Rains Slash Global Clove Yields, Driving Prices Higher
Clove production has taken a significant hit this season, with yields falling by 30% due to relentless rains in key growing regions. This drop in output has tightened supply and caused a sharp increase in prices.In India, clove prices now range between $9,84 and $10,32 per kg, compared to $8,28–$8,40 per kg just two months ago. Delays in fresh stock arrivals, typically expected by September, have compounded the shortage, leaving buyers grappling with limited availability.
Supply Crunch Fuels Price Surge
Around 35% of old stock remains unsold, but traders say these reserves are insufficient to offset the delayed harvests. Earlier in the year, seasonal dips in prices were linked to reduced demand during weddings and lower household consumption. Now, with winter approaching, demand for cloves in spices, traditional medicine, and other uses has begun to recover, pushing prices higher.Weather Disruptions Hit Major Producers
Key clove-producing countries, including Indonesia, Zanzibar, and Madagascar, have all reported lower yields due to extreme weather. Specific challenges include:- Zanzibar: Harvests have been delayed to October-November instead of the usual schedule.
- Brazil: Fresh stocks are not expected until mid-November.
- India: The country relies on imports from Sri Lanka, Tanzania, and Madagascar to meet its annual demand of 18,000 tonnes. Reduced exports from these nations are already affecting Indian markets.
Beyond Cooking: Clove Demand Stays Strong
Cloves play a vital role in Indian culture, beyond their culinary uses. They are used in rituals, traditional medicine, and pharmaceuticals, ensuring steady demand regardless of price fluctuations. This cultural significance adds resilience to clove consumption, even when prices rise.What’s Next for the Clove Market?
With supply constrained and demand increasing, experts anticipate further price hikes in the short term. Traders are adjusting to the elevated rates, and producers are poised to benefit from better margins despite reduced yields.The pace of price stabilization will depend largely on how quickly fresh shipments arrive from international suppliers. Persistent weather issues and logistical challenges could continue to delay recovery, keeping prices elevated through the coming months.
Conclusion: Supply Shortfalls Drive Market Uncertainty
The clove market is navigating a complex mix of reduced production, strong demand, and delayed harvests. While producers may benefit from higher prices, traders and buyers face the challenge of adapting to tight supplies and rising costs. The coming months will determine whether the market stabilizes or remains under pressure, as global supply chains work to recover.Click here to reach our trading platfrom CMBroker
