Sri Lankan cloves prices stabilize after tumble

Feb 13, 2008 (LBO) – Prices of Sri Lankan clove have stabilized after a sharp fall last month, a senior official has said. But growers are expected to start harvesting more as prices firm and also to do replanting. Gulam Chatoor of the Spices & Allied Products Producers' and Traders' Association (SAPPTA) said producers and exporters were enjoying the benefits of a better harvest and strong demand from India.

"After falling from over 600 rupees to 475 rupees per kilo, the clove market has strengthened and stabilized at 525 rupees per kilo," he said in a statement.

"With a steady demand from India and a good crop in Sri Lanka, large exports are taking place to India where Sri Lankan cloves enjoy a zero tariff under the Free Trade Agreement."

Imports into India from other origins are subject to a 35 percent tariff.

India's annual imports from all countries are around 9,000-10,000 tonnes.

Sri Lanka's exports have been around 3,000-4,000 tonnes, Chatoor said.

Clove prices tumbled in January, falling by over 100 rupees a kilo to 450-470 rupees.

Chatoor attributed the fall at the time to