The local cloves market is moving steadily compared to last year’s prices, mainly due to the strong global demand. The prices of best quality stuff quote in a range of $8,83 – $9,17 per kg FPB while average grade has a tag of $8,15 – $8,55 per kg FOB, India. The prices were in the range of $6,65 – $6,79 per kg FOB during last year.
According to stockists, because of the uptrend of prices in Indonesia and Madagascar, the domestic market of India is moving on a higher side. Indonesia is the largest clove producer, offering expenses of $8,15 – $8,83 per kg, and Madagascar exporters are also offering approximately at those levels of $8,49 per kg FOB.
Less production in Indonesia is a significant concern in the market. The market might cross $ 9,50 due to a shortfall in production, but weak demand has kept the prices relatively stable for a couple of months. Traders expect the domestic market to remain steady in the current year, as local demand is being fed by imports from Indonesia and Sri Lanka. The next harvesting season in India will be by the end of December.