Indian Clove FOB Prices Hold Firm as Import Demand Stays Active

Indian organic clove FOB prices in New Delhi are steady in EUR terms, with whole and ground grades moving sideways over the past week and only modest gains over the past month. Stable offers suggest a balanced but tight spot market, underpinned by strong import dependence and firm overseas values. India remains heavily reliant on imported cloves, mainly from Madagascar, Indonesia, Comoros, Tanzania and Sri Lanka, with 2024 import volumes rising versus previous years and continuing strong into the first half of 2025. At the same time, domestic spice demand is seasonally strong, supported by the food, pharmaceutical and traditional medicine sectors, while re-export flows keep importers active in the physical market.

Prices

Latest New Delhi FOB offers for organic Indian-origin cloves (converted at ~1 USD = 0.92 EUR) show whole cloves around EUR 8.80/kg and ground cloves near EUR 8.95/kg, with no change versus the previous assessment on 14 August. Over the past four weeks, this implies a mild upward bias of roughly 1–2%, consistent with firm global origins and steady local buying.

The lack of week-on-week movement points to near-term price consolidation, but elevated replacement costs from key African and Indonesian origins are preventing any meaningful downside in India. Importers report that offers from Madagascar and Indonesia remain firm on tight trade stocks and structured export programs.

Supply & Demand

India’s clove balance remains structurally import-dependent, with most of the country’s requirements met by Madagascar, Indonesia, Comoros, Tanzania and Sri Lanka. Trade data for 2024 show Madagascar and Indonesia together accounting for the bulk of volumes, and imports in January–June 2025 remaining robust versus the same period of 2024, reflecting sustained downstream demand.

Domestic consumption is driven by the food, confectionery, ayurvedic and pharmaceutical sectors, as well as blending for re-export to third markets. Studies on India–Indonesia clove trade underline how India’s import needs have been amplified by episodes of domestic crop stress from extreme weather, keeping the country a key demand hub for Indonesian and African supplies.

Weather & Crop Outlook (India)

For the next 3 days (16–18 August 2026), monsoon conditions over key spice-growing belts along the Western Ghats (Kerala, Tamil Nadu and Karnataka) are expected to remain seasonally humid, with scattered showers but no major extreme event highlighted in the latest publicly available India-focused weather discussions.

Given cloves are largely imported and Indian production is relatively small, these short-term weather patterns in southern India have limited immediate impact on New Delhi FOB clove pricing. However, persistent heavy rainfall or flooding later in the season could affect logistics for inland spice movements, marginally influencing basis levels rather than outright global prices.

Fundamentals & Trade Flows

Global clove fundamentals remain tight to balanced. Indonesia, Madagascar, Tanzania, Comoros and Sri Lanka continue to dominate world production, with Indonesia consuming most of its crop domestically for kretek cigarettes and exporting only a minority share. Tight forward availability in Indonesia and a delayed crop profile in Madagascar, highlighted in recent trade commentary, have underpinned a firm price floor into key importing markets such as India and the UAE.

Trade analyses also note that India’s clove imports are increasingly used for re-exports, magnifying the impact of any disruption in supply from African and Indonesian origins on Indian FOB values. In addition, Indian exporters are actively engaging with Southeast Asian markets—including Indonesia—for broader food and agri products, signaling ongoing integration of India into regional spice value chains.

Trading Outlook (Next 3 Days, India FOB)

• Bias: Sideways to mildly firm, with New Delhi FOB levels expected to hold near current EUR prices amid steady import costs and stable local demand.
• Buyers (importers & grinders): Consider covering near-term physical needs on dips; downside appears limited as long as Indonesian and African replacement offers stay elevated.
• Sellers (stock holders & exporters): Maintain offer discipline; short-term price softness is unlikely without a clear easing in overseas origin prices or a sudden demand slowdown.
• Risk factors: Any negative surprise on upcoming East African or Indonesian harvest expectations, or logistics bottlenecks into Indian ports, could quickly push FOB levels higher.

3-Day Price Indication – India (FOB)

• New Delhi – Whole cloves, organic, FOB: ≈ EUR 8.80/kg; expected range next 3 days: EUR 8.70–8.95/kg (sideways to slightly firmer).
• New Delhi – Ground cloves, organic, FOB: ≈ EUR 8.95/kg; expected range next 3 days: EUR 8.85–9.05/kg (sideways to slightly firmer).