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The Indian Clove Trade – Exports, Imports, and Market

The Indian Clove Trade – Exports, Imports, and Market

Cloves have always been an important part of international trade, from the old spice routes to the trade ports. Not only do these tiny, fragrant flower buds flavor great in food, but they are also extremely important to the economy and are traded by the ton across different nations. But who manages the international clove trade these days? And how does a spice-rich country like India fit into this market, especially regarding clove export from India?

As the need for natural spices in medicine, food, and health products grows, cloves are again getting much attention. This blog post will discuss the worldwide clove export. It will explore the countries that dominate the market and look closely at India’s unique position as both a significant importer and a growing exporter. 

Intensive International Trade

The value of clove exports hit about US$609 million in 2023, down 2.7% from the previous year. However, this number is almost twice as high as in 2019, which shows that cloves are still in high demand in many fields, from traditional medicine to food and scents.

A small group of top players controls most of the market. In 2023, about 83% of all cloves exported worldwide came from the top five countries.

Madagascar, Indonesia, Singapore, Sri Lanka, and the United Arab Emirates. Madagascar led the world supply chain with a contribution of $248 million. Indonesia came in second with about $99 million.

What is India’s position?

India is a big exporter of spices in general, but its share of clove export from India isn’t very high.

  • India sent about US$15.1 million abroad in 2023, about 2.6% of all cloves sent internationally.
  • After this, India was ranked eighth in the world.
  • About 0.003% of all the goods India sends are cloves, which is a minimal amount.

This proves that India is not a world leader in the clove trade, even though it is interested in it.

India’s Most Important Export Markets

Clove export from India are aimed at certain high-value areas. The important places to go are as follows.

  • United Arab Emirates (29% of all goods sold)
  • United States (about 20%)
  • Among them are Canada, Morocco, the UK, Australia, Algeria, Nigeria, and more.

These markets usually prefer processed or value-added clove goods because they want cloves for cooking, beauty products, and herbal uses.

How is India a significant importer?

India is one of the biggest buyers of cloves in the world, so it’s interesting. India needs to import many things because it has a strong internal demand for food and the ayurvedic sector. It also needs oil-rich cloves for exports that add value.

  • About 23% of all cloves brought into the world that year came from India, which spent almost US$140 million on them.
  • Madagascar, Sri Lanka, the Comoros, Tanzania, and Indonesia are the main places where the products are imported.

Reasons for the Low Export Share of India

A number of things cause India’s generally low clove export numbers.

Excessive Use at Home

It is impossible to export as much of India’s clove supply because it is used up in the country itself.

Limited Areas for Production

India can only grow cloves in a few areas, like Kerala and the Andaman and Nicobar Islands. This means that yields are smaller than in other countries that grow cloves.

Choices for Quality in the Global Market

Cloves from places like Madagascar have more essential oil, which makes them better for medicines, perfumery, and high-end buyers.

Multiple exports and blending

India often buys raw cloves from other countries, processes or blends them, and then sends smaller amounts of value-added goods to other countries.

Historical Background

India’s history of spices goes back a long way to cloves. There were some spices that Portuguese and other European traders wanted hundreds of years ago. Even though cloves have a lot of historical value, India’s current output and export numbers are still low compared to those of Africa or Southeast Asia.

Also Read This: The Meaning of Transshipment and importance in Modern Logistics

India’s Clove Trade Overview-  2023–2024 

Metric2023 Export2024 Import
Value (USD)US$15.1 millionUS$187 million
Volume (tons)~1,700 tons~25,000 tons
International Share (Value)~2.6% of world exports~23% of global imports
International  Export Rank8ᵗʰ largest exporter
Top Export DestinationsUAE, USA, Canada
Primary Import SourcesMadagascar, Sri Lanka, Comoros

Export Value vs. Shipment Volume

Reports online that say India is a top producer are not always clear. This is probably because metrics are based on the number of exports instead of their real value or weight. India exports a lot of cloves internationally, but compared to countries like Madagascar and Indonesia, it is still a long way behind in volume and revenue.

Wrapping It Up

India is a small clove producer and a significant importer. India’s export proportion is low but can grow if it improves quality, processing, and value. The scope for clove export from India can expand significantly if these factors are addressed strategically.

Indian clove manufacturers may attract new clients by strengthening standards, branding origin-based spices, and employing traditional herbal knowledge to stand out in higher-end markets as organic and therapeutic spice demand develops. If its economy is properly designed, India might swiftly be the world’s largest clove exporter in volume and value. 

FAQs

Why is India importing more cloves than exporting?

Despite its spice wealth, India’s domestic consumption, especially food, Ayurveda, and perfumery, exceeds local output. India imports a lot to meet internal demand. 

What prevents India from exporting cloves first?

India cannot dominate the export market due to limited cultivation zones, significant domestic use, and competition from Madagascar and Indonesia’s oil-rich cloves.

Can India export more cloves?

Yes. India may greatly increase its spice exports by investing in quality farming, post-harvest processing, and value-added clove products.

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