Clove prices tumble

Clove prices have tumbled by over Rs. 100 per kg to Rs 450/ 470 per kg during January. Gulam Chatoor, past chairman of the Spices and Allied Products Producers’ and Traders Association, in a statement said that at the other origins, Indonesia and Madagascar, clove prices have been falling and with a very good crop in Sri Lanka presently on, the world prices have been declining.

Practically all exports from Sri Lanka have been going to India where Sri Lankan cloves enjoy a zero tariff under the Free Trade Agreement whereas, imports into India from other origins are subject to a 35% tariff.

Sri Lanka accounts for 3,000-4,000 of India’s annual imports from all countries of around 9000/10000 tonnes.