The traders of the domestic clove market are poising themselves to enjoy the bullish phase of the market as there is less supply of the spice compared to its’ demand. Moreover, with a likely fall of the clove production in Indonesia, the largest producer globally, the Indian market will be in an appreciating mode.
Compared to January and February, when the best grade clove was sold for 7.465 USD, the same variety is being e clove is being sold between 9.840 USD and 9.908 USD. The price will be up as the buying from North India starts, which stopped due to the COVID situation.
A further increase in the price is also on the halt for the time being as there is some carry overstock in large proportion. But all these are likely to change as the global market, including India, will take a hit due to the low production and supply of clove from Indonesia.
India consumes 7000 tons of clove but produces an average of 2000 tons only. According to the Spice Board of India, for the financial year 2020-21, India had produced only 1183 tons of clove. Hence the production of spice in Indonesia is crucial for India’s market.
Traders are hopeful that while the price of the clove will be steady in the coming days, it is likely to shoot in the months. Depending on the supply from Indonesia, the market price of the clove will be set as per the traders and growers of the clove.
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