Cloves continue to peak on tight supply
Kochi: Cloves prices in the global and domestic market continued to rise to unprecedented levels following severe squeeze in supply when the demand is greater. As a result, India, major consumer and net importer, has already shipped out around 1,000 tonnes of the commodity so far, and is having orders in hand for another 1,000 tonnes, trade sources in Bangalore.
Meanwhile, growers/primary market dealers in Nagercoil, the main growing area, reluctant to sell hoping the prices would rise above Rs 1,200 a kg, Mr Subramani a major grower said.
At the same time, upcountry dealers said: “Huge investments in the commodity on imports from Madagascar, Comoros and Zanzibar is risky as many cargoes are stolen from ports and many containers landed with 50 per cent cargo and it now a big problem”.
According to the Public Ledger (PL), “international cloves prices remain very high due to strong demand which is exacerbating the squeeze on stocks ahead of a hoped-for decent flow of new crop arrivals from various origins.”
However, trade sources based in upcountry markets said: “In Indonesia, cloves prices soared to $24,000-26,000 a tonne depending on quality.
The next crop too has failed, which will result in a shortage of 30,000-40,000 tonnes of cloves there”.
New crops in Comoros was small and estimated 1,000-1,200 tonnes and all this cargo is being sold at $18,000 a tonne, they said. “But these cargoes are wet with no guarantee for the quality.”
The crop in Zanzibar is also short with delayed harvesting coupled delay in shipments while many contracts have been defaulted.
Cloves BRAZILIAN BAHIA NO 1—– 20200 USD/MT CFR NY
Cloves Madagascar CG3————— 21200 USD/MT CFR NY
Zanzibar Cloves—————————- 21650 USD/MT CFR NY