Madagascar Clove season is normally from October to March/April. As everybody knows, Madagascar has two crop - South crop and North crop. North crop is considered to be the best in quality, and always price on higher side for this north crop. South crop harvest would start in September, and crop start coming to terminal market in October. Where is the North crop would start harvesting in October, and crop start coming to terminal market by November.

Last season, i.e., September 2016 starting, South crop started from Ariary 11000 per Kg, and the first FOB offer for south crop was USD 5900 per Mt in Septemmber 2016.

And north crop started at price range of 14000 Ariary per kg, and FOB offer at USD 6700 per Mt.

During those period, the forex level, i.e., Ariary against US Dollar, was at Ariary 3200 against One US Dollar. This was the most attractive factor during last season, whereby exporters offerred as low as USD 5900 to USD 6300 and USD 6800. Later forex level dipped, and Ariary strengthened to 3050 per one USD making export offers expensive. THIS IS THE STORY OF LAST SEASON.

India is the main buyer, and the only single largest buyer of Clove in the world. And therefore, Madagascar is also depend on Indian demand, and Indian buy. Currenty, Clove is too expensive in local market of Madagascar. Good quality, well dried and cleaned clove is available only at around Ariary 26000-27000 per Kg. Below this level, good quality is not available. And today, [29th June] Ariary is at 3000 level against one USD, and it is continuously on down trend. Working out at 3000 level, Ariary 26000 per kg works out to USD8670 per Mt at X Warehouse. Adding expenses, and FOB Costs and CNF costs etc. India port CNF would be around USD 9000. Black stock would be available at USD 8500-8600 level. But at these level, India may not buy, as Indian local price is around Rs. 680-700 per kg.

Therefore, better for Indian importers to plan in advance for next season. If planned in advance strategically, Indian buyers can get lower rate at the beginning of harvest in the new season starting in September 2017. South crop will come first in September-October, and Finirive Est stock [north] would come in the market by end October/beginning November, and Mannannara crop [the best North crop] would reach market by end November.

It is too early to comment on opening price or quantity size in the next season. However, analysing the present scenario, and the huge carry over stock in Madagascar, and probable crop size expected by Farmers, one can only anticipate lower price level at the harvest beginning. May be USD 6500 to USD 7000 should be an ideal figure to expect during September--October 2017 as of now. However, fine tuned figures could be discussed only by end mid August 2017.

Whatever be the price levels, the fact remains, "early buyers would get the lowest price possible." Therefore, advice all buyers / importers to make your tie ups well in advance to get the lowest price.

I invite serious buyers/importers for such pre-arrangements with commitment, so that I could plan sourcing clove at the start of harvest from villages, and offer the best lowest price possible. Interested importers/buyers please contact at Whatsapp +261336196095 or Email me at gkumarks@gmail.com