Indian Organic Clove Prices Hold Firm as Kerala Rains Support Bullish Tone

Indian organic clove prices are steady at elevated levels, with FOB New Delhi offers unchanged and tight domestic availability in Kerala keeping a broadly bullish undertone. Strong mandi quotations in Idukki and firm Cochin spot levels signal no immediate relief for buyers, even as overseas origin costs remain high. India’s physical clove market continues to trade at historically strong levels. Kerala wholesale mandis reported average prices around ₹83,000–97,000 per quintal in mid‑ to late September, with Munnar touching ₹97,000/quintal on 21 September and an all‑India weekly average near ₹83,392/quintal. Spices Board data for Cochin showed clove at about ₹875/kg on 24 September, confirming a firm coastal Kerala market. Recent analysis also placed India near a 52‑week high for cloves at USD 10,321/tonne in early September, reflecting global supply stress and higher import costs.

Prices

FOB New Delhi organic clove quotations are stable week‑on‑week:

• Whole cloves, organic, origin India, FOB New Delhi: 9.4 EUR/kg.
• Ground cloves, organic, origin India, FOB New Delhi: 9.6 EUR/kg.

Both quotes have been unchanged since mid‑September, consolidating after a modest upward move earlier in the month. At the domestic level, Kerala mandi data show modal prices of ₹95,000/quintal on 25 September, up from around ₹80,000–90,000/quintal earlier in the month, signalling a firmer producer and trader stance.

Supply & Demand

Kerala remains India’s key clove‑growing hub, and recent mandi data from Idukki (Munnar, Thodupuzha, Kattappana) show consistently high prices between ₹95,000 and ₹97,500 per quintal through mid‑ to late September. This points to tight local availability and firm trader buying ahead of the main festival demand window. All‑India seasonal analysis indicates that September prices are roughly 31% higher year‑on‑year, reinforcing the structurally tight backdrop.

On the import side, India is facing elevated replacement costs amid constrained output in major origins such as Madagascar and Indonesia, which helped push Indian values to a 52‑week high earlier in September. Export data for organic clove shipments also suggest steady international interest at current elevated price bands, supporting FOB quotations from India.

Weather & Crop Outlook (Region: IN)

In Kerala, the India Meteorological Department signalled continued rain and thunderstorms through at least 27 September due to a low‑pressure area over the Bay of Bengal, with squally weather off the Kerala and Karnataka coasts. Local IMD city forecasts (e.g. Kannur) show partly cloudy skies with one or two spells of rain or thundershowers and high humidity near 70–85% on 27 September.

For clove trees, this late‑monsoon moisture is broadly supportive, helping soil moisture and reducing immediate drought stress but can delay some field access and post‑harvest handling. Overall, no major weather‑related relief to tight supply is expected in the next few days, so Indian prices are likely to remain underpinned.

Fundamentals & Market Drivers

• Domestic strength: Kerala mandi averages around ₹83,000–97,000/quintal and Cochin spot at approximately ₹875/kg confirm strong internal pricing.
• Global backdrop: Recent analysis shows India near a 52‑week clove price high, linked to weather‑hit crops in key origins and expensive freight, keeping import parity elevated.
• Seasonal pattern: Long‑term seasonality points to relatively firm prices into late monsoon, with October often softer, but current tightness and global supply issues may limit the usual seasonal dip.

Trading Outlook & 3‑Day View (Region: IN)

Strategy notes (FOB New Delhi, organic cloves)

• Importers / industrial buyers: With whole at 9.4 EUR/kg FOB and ground at 9.6 EUR/kg FOB holding firm, consider covering near‑term Q4 needs now; downside from current levels appears limited while Kerala mandis remain above ₹90,000/quintal.
• Exporters / stock‑holders in India: Maintain a slightly bullish bias; current levels remain competitive versus reported international transaction values, and domestic demand into the festival period should support offers.
• Short‑term traders: Look for opportunities on minor dips rather than chasing spikes; monitor Kerala mandi prints and Cochin spot for any sign of easing below roughly ₹85,000/quintal that could signal softer FOB.

3‑day directional price indication (27–29 September 2026, region IN)

• Kerala domestic mandis (Idukki / Cochin): Slightly firm to stable; continued rains and limited arrivals should keep prices in a high band.
• FOB New Delhi, whole cloves, organic: Stable around 9.4 EUR/kg over the next three days with a mild upside risk if Kerala mandi prices tick higher.
• FOB New Delhi, ground cloves, organic: Stable around 9.6 EUR/kg; spreads to whole likely to remain narrow.