India's Clove Price Reduces Significantly to $4,354 per Ton, Fluctuating Wildly over 2022

India Clove Import Price in November 2022

In November 2022, the clove price amounted to $4,354 per ton (CIF, India), shrinking by -20.3% against the previous month. Over the period under review, the import price recorded a deep slump. The growth pace was the most rapid in October 2022 an increase of 34% m-o-m. The import price peaked at $8,004 per ton in January 2022; however, from February 2022 to November 2022, import prices failed to regain momentum.

There were significant differences in the average prices amongst the major supplying countries. In November 2022, the country with the highest price was Indonesia ($8,067 per ton), while the price for Sri Lanka ($4,089 per ton) was amongst the lowest.

From January 2022 to November 2022, the most notable rate of growth in terms of prices was attained by Indonesia (+3.1%), while the prices for the other major suppliers experienced a decline.

India Clove Imports

Clove imports into India surged to 671 tons in November 2022, picking up by 60% compared with the month before. Overall, imports, however, showed a deep downturn. The growth pace was the most rapid in September 2022 with an increase of 123% m-o-m. Over the period under review, imports reached the peak figure at 3.1K tons in April 2022; however, from May 2022 to November 2022, imports stood at a somewhat lower figure.

In value terms, clove imports soared to $2.9M (IndexBox estimates) in November 2022. In general, imports, however, saw a drastic downturn. The growth pace was the most rapid in September 2022 when imports increased by 132% month-to-month. Over the period under review, imports reached the peak figure at 22K tons in April 2022; however, from May 2022 to November 2022, imports stood at a somewhat lower figure.

India Clove Imports by Country

In November 2022, Comoros (410 tons) constituted the largest clove supplier to India, accounting for a 61% share of total imports. Moreover, clove imports from Comoros exceeded the figures recorded by the second-largest supplier, Madagascar (193 tons), twofold. The third position in this ranking was taken by Sri Lanka (43 tons), with a 6.4% share.

From January 2022 to November 2022, the average monthly rate of growth in terms of volume from Comoros totaled +5.7%. The remaining supplying countries recorded the following average monthly rates of imports growth: Madagascar (-16.9% per month) and Sri Lanka (-5.3% per month).

In value terms, Comoros ($1.7M), Madagascar ($866K) and Sri Lanka ($174K) were the largest clove suppliers to India, together accounting for 94% of total imports.

Factors Affecting Clove Prices

The Indian clove market is highly dependent on international prices, as the country is a major importer of this spice. The international market for cloves is quite volatile, and prices can fluctuate significantly based on supply and demand conditions.

Moreover, poor crop yields in major producing countries such as Tanzania and Indonesia have led to a shortage of supply, while increased demand from China has also put pressure on prices.

Lastly, local demand for cloves in India is also growing steadily, as more people are becoming aware of the spice's culinary and health benefits.

Source: IndexBox Market Intelligence Platform