Indian Organic Clove Prices Hold Firm as Domestic Demand Outpaces Supply
Indian organic clove prices remain firm despite softer global benchmarks, with tight domestic supply and steady demand keeping New Delhi FOB offers supported.
Prices
New Delhi FOB offers for organic cloves (whole and ground, origin India) are broadly unchanged on the week, indicating a pause after incremental gains in August. Across Indian mandis, recent clove quotes around ₹95,000–97,500 per quintal on 29 August point to a still‑expensive physical market that is not yet reacting to softer international benchmarks.
*Converted from ₹95,000–97,500/quintal at ~₹84/EUR.
Supply & Demand
Domestic supply remains structurally tight, with India depending heavily on imported cloves and clove oil. Recent import flow data highlight a still‑robust inflow of clove products into India, confirming that domestic production alone cannot satisfy demand.
On the export side, Indonesia continues to dominate global clove production and exports. Current reference export values there, around US$5.6/kg based on trade statistics, signal some global price softening versus a year ago, yet this is not fully reflected in Indian wholesale offers, partly due to currency moves and local margin protection.
Weather & Crop Conditions (India – IN)
Key spice-growing belts in Kerala and Tamil Nadu remain under the influence of late monsoon showers. Short‑range forecasts point to scattered rain, warm temperatures and high humidity over the next few days, conditions that are broadly favourable for perennial tree spice health and do not suggest imminent supply shocks.
No extreme events have been reported in the last few days that would materially alter 2026/27 clove availability, keeping the weather impact on near‑term price direction neutral to slightly supportive.
Fundamentals & Trade Flows
Recent official and trade‑database updates show that Indian clove and clove oil imports have expanded sharply over the last year, underlining structurally rising domestic usage. The latest published import analysis, updated on 2 September, continues to show sizeable inbound shipments and diversified origins, which should cap extreme upside but still leave India exposed to global price swings.
At the same time, domestic retail and mandi prices for spices in general remain high, with cloves among the premium segment alongside cardamom and nutmeg. This high price environment reflects both broader food inflation and strong demand from the flavour, confectionery and traditional medicine sectors.
Trading Outlook (Next 1–2 Weeks)
- Bias: Mildly bullish. Tight local availability and steady demand argue for firm to slightly higher prices, even as global benchmarks ease.
- Buyers: Consider covering near‑term needs on small dips; avoid heavy forward buying at current elevated levels unless downstream demand is locked in.
- Sellers: Offers can stay firm but should track any sudden softening in Indonesian export quotes to remain competitive for export‑oriented parcels.
- Risk watch: Currency volatility and any disruption to import flows into India could quickly translate into sharper domestic price spikes.
3‑Day Price Indication – India (IN)
- New Delhi FOB, whole organic cloves: around 9.5–9.7 EUR/kg, expected broadly stable with an upward bias if mandi prices tick higher.
- New Delhi FOB, ground organic cloves: around 9.7–9.9 EUR/kg, also seen steady to slightly firmer on cost pass‑through from whole spice.
- Domestic mandis, physical cloves: equivalent to roughly 11.3–11.8 EUR/kg, likely to remain in this band over the next three days absent currency or import shocks.