Prices of cloves are set to rise in India, as demand is expected to outstrip supply with decline in production across other spice-cultivating countries.
A reported sharp fall in cloves output in major growing countries – Indonesia and Sri Lanka – is said to be creating a bullish trend in the Indian markets.
India is highly dependent on imports from these countries to meet its demand.
The Indonesian production is seen at 16,000 tonnes as against the usual output of 80,000 tonnes. Similarly, the Sri Lankan output is at around 5,000 tonnes.
Production of cloves in India during the current season is estimated at 600 tonnes as against about 1,500 tonnes last year, while the annual consumption is projected at around 18,000 tonnes, trade sources said.
Unfavourable weather conditions last year coupled with Cyclone Ockhi in Sri Lanka and Kerala in December, have hit the current crop very badly.
India remains a net importer of the spice with the country importing in 17,095 tonnes of cloves valued at Rs 869.70 crore in 2016-17, according to officials of Spices Board.