Indian Clove Prices Flat as Monsoon Rains Leave Market Well Supplied

Indian clove prices are holding broadly flat in early July, with New Delhi FOB levels unchanged week‑on‑week despite soft spot demand and adequate near‑term supply. Monsoon conditions in key growing and collection areas are normal to slightly wet, supporting trees but not yet disrupting logistics, keeping a cap on any immediate upside. Export and domestic buying interest remains selective, with traders reporting weak volumes at Indian wholesale markets even after recent price softness. At the same time, no major supply shock has emerged from India or other origins in the last few days, leaving the market in a narrow range. For now, price risk over the next 2–3 sessions looks balanced, with only modest downside potential unless monsoon disruptions intensify or export bids weaken further.

Prices

Indian organic clove prices (FOB New Delhi, converted to EUR) are effectively unchanged compared with the previous week, reflecting a stable but lethargic physical market. Recent mandi indications from Kerala (around ₹800/kg at Thodupuzha on July 8) also point to steady to slightly weak domestic spot levels rather than a sharp rally.

Market commentary from Indian trade press earlier this week highlighted weak sales even at subdued Rupee prices, which has helped keep wholesale clove quotations broadly steady rather than trending higher.

Supply & Demand

On the supply side, India is a minor clove producer but an active re‑exporter. Recent export performance data place clove well behind chilli, cumin and cardamom in value, underlining its niche role in the Indian spice basket and limiting aggressive production‑driven price swings.

Monsoon weather across southern India is seasonally wet but not extreme. In Kochi, Kerala, daily forecasts for July 12–14 point to mostly cloudy conditions with light to moderate rain and highs around 30–32°C, which support clove tree moisture and nurseries without major flood risk in the very short term. Karnataka’s key spice belts are seeing hot, partly cloudy conditions with highs in the 32–38°C range, again normal for the season and not yet impacting transport flows.

Demand from Indian spice blenders and export packers appears cautious, in line with more general reports of small and medium exporters actively canvassing for buyers rather than turning away demand. This points to ample availability and competitive pricing across the broader spice complex, spilling over into cloves.

Fundamentals & Weather

Fundamentally, the clove balance in India and globally looks comfortable in the near term. No fresh news in the last three days points to crop damage or policy shocks affecting clove origins such as India or other Indian Ocean producers. Broader Indian spice export statistics up to early 2026 show healthy overall shipments but with growth concentrated in other commodities, implying that clove flows are not driving the sector.

Weather for the next three days in southern India remains seasonally supportive. In Kochi, intermittent showers combined with warm temperatures will maintain soil moisture without major harvest or port disruptions, as clove harvesting is off‑peak and logistics mostly concern warehoused stocks. In interior Karnataka, hot but largely dry monsoon conditions reduce the risk of short‑term transport bottlenecks for containerised spice shipments headed to western ports.

Trading Outlook (Next 3 Days)

• Bias: Sideways to slightly soft. With demand subdued and weather benign, upside catalysts are limited in the coming 72 hours.
• Buyers: Consider staggered coverage at current New Delhi FOB levels, prioritising premium organic lots; little evidence yet of imminent price spikes.
• Sellers: Maintain offer discipline; avoid undercutting for volume as weak spot interest already caps prices, but be flexible on freight and payment terms to secure export orders.
• Risk watch: Monitor monsoon developments and any new trade or quality advisories from the Spices Board for potential logistics or compliance costs affecting cloves.

3‑Day Indicative Price Direction (EUR, region IN)