Sharp fall in global cloves output may push up prices
The availability from Brazil and African producers is likely to be
limited. Inventory in the world markets is almost empty and prices are
likely to soar to over $6,000 a tonne in the coming weeks.
Kochi, Sharp fall in production of cloves in almost all producing
countries in the world where harvesting is either under way or is to
take place early next year, is likely to push up prices to higher levels
in the coming days, if the traders’ estimates turn out to be true.
The price, at present, is reportedly between $5,200 and $5,400 a
tonne, a Bangalore-based dealer told Business Line.
The output in Sri Lanka, where harvesting is to take place next
month, is estimated to be around 2,000 tonnes as against the earlier
projection of 5,000 to 6,000 tonnes. Similarly, in Madagascar also it is
estimated to be between 1,500 tonnes and 2,000 tonnes as against its
normal production of 12,000 tonnes.
In Zanzibar, it is estimated to be 800 tonnes where the normal output
is 4,000 tonnes. The prices quoted here is $5,400 a tonne. Comoros is
reported to have produced only an estimated 600 to 700 tonnes and the
entire quantity has been sold out.
In the world’s largest producer of cloves, Indonesia, where
harvesting is in March/April, the total production is estimated to be
only 10 to 20 per cent of its total output at 15,000-20,000 tonnes.
Indonesia had a bumper crop with a total production of around 80,000
The price quoted at present is $4,900 a tonne. Indonesia, which uses
a substantial quantity of its cloves in the tobacco industry, is
unlikely to have much for exports, the dealer said.
According to the Brazil Pepper Trade Board, harvesting in Brazil has
been delayed. Usually, December is the peak time for harvesting “but
this year it has just started. It looks like big shipments will happen
from January onwards”, it said.
Meanwhile, speculation is rife on the rise and price talks are far
above $4,400 already, even with no merchandise available, it added.
A sharp fall in the world production of the commodity has pushed up
its prices in the international market and expectations are that it
might cross $7,000 a tonne next year, as the availability from Brazil
and African producers is likely to be limited, trading sources here
They said the inventory in the world markets is almost empty and, as
a result, prices are likely to soar to over $6,000 a tonne in the coming
Cloves production in India continues to remain far below the
requirement, making India a net importer of the commodity. “Stocks in
the country are limited. The indigenous production is estimated to be
somewhere between 1,000 and 2,000 tonnes”.
It is grown in Kerala’s Idukki and Kottayam districts and Kanyakumari
district of Tamil Nadu and in some parts of Karnataka as intercrop.
The total demand in the country is estimated at between 8,000 tonnes
and 10,000 tonnes. The total import of cloves during April - October
2007-08 stood at 3,610 tonnes valued Rs. 44.33 crore as against 2,881
tonnes valued at Rs. 53.97 crore in the corresponding period last
The unit value during the first seven months of the current fiscal
was at Rs. 122.80 a kg compared to Rs. 187.35 in the same period in