EXPORT OF CLOVES FROM INDIA To the World.

EXPORT OF CLOVES FROM INDIA

Introduction

Cloves (Syzygium aromaticum) are one of the most valuable and widely traded spices in the world. Known for their strong aroma, pungent flavor, and medicinal properties, cloves are extensively used in food processing, pharmaceuticals, cosmetics, perfumery, and traditional medicine systems such as Ayurveda and Unani.

India is both a producer and a major consumer of cloves, while also playing an important role in the global spice trade as an exporter, processor, and re-exporter. With growing global demand for natural spices, essential oils, and health products, the export of cloves from India has gained strategic importance.

Clove Producing and Exporting States in India

Major Clove Producing States

Clove cultivation in India is limited and mainly concentrated in:

• Tamil Nadu
• Kerala
• Karnataka
• Andaman & Nicobar Islands

Among these, Tamil Nadu and Kerala are the primary producing states due to suitable agro-climatic conditions such as high humidity, rainfall, and moderate temperatures.

Exporting Hubs

Even though domestic production is limited, India exports cloves through major spice processing and trading centers located in:

• Kerala (Kochi)
• Tamil Nadu (Tuticorin, Chennai)
• Maharashtra (Mumbai)
• Gujarat

India also acts as a re-export hub, importing cloves from countries like Indonesia, Madagascar, Sri Lanka, and Comoros, processing them, and exporting to global markets.

HSN Code for Cloves

Cloves are classified under the following HSN code for export purposes:

• HSN Code: 0907 00 00
• Description: Cloves (whole fruit, cloves and stems)

This code is used for customs clearance, GST refunds, RODTEP benefits, and international trade documentation.

Export Policy

• The export of cloves from India is “Free” under the prevailing Foreign Trade Policy (FTP).
• No export license is required.
• Exporters must comply with:
  • Food Safety and Standards Authority of India (FSSAI) regulations
  • Quality standards and residue limits prescribed by importing countries
  • Plant Quarantine / Phytosanitary norms, where applicable

Export Destination Countries

India exports cloves to a wide range of international markets, including:

• United Arab Emirates
• Saudi Arabia
• Bangladesh
• Malaysia
• Singapore
• USA
• UK
• Germany
• Sri Lanka
• African countries

Middle Eastern and South Asian markets dominate Indian clove exports due to strong culinary demand, while Europe and North America import for food processing and pharmaceutical uses.

Export Performance

India’s clove export performance is influenced by:

• Limited domestic production
• Strong domestic consumption
• Dependence on imports for re-exports

Despite this, exports have shown steady growth in value, driven by:

• Increased demand for whole and stem cloves
• Growing use in essential oil extraction
• Expansion of ethnic food markets globally

India’s strength lies in value addition, cleaning, grading, sterilization, and customized packaging for export markets.

Documentation for Export of Cloves

The following documents are generally required:

1. Commercial Invoice
2. Packing List
3. Shipping Bill
4. Bill of Lading / Airway Bill
5. Certificate of Origin
6. FSSAI Certificate
7. Phytosanitary Certificate (if required)
8. Insurance Certificate
9. Export Declaration Form (EDF)
10. Purchase Contract / Letter of Credit (LC)

Additional certificates such as Organic, ISO, or HACCP may be required based on buyer demand.

Export Promotion Schemes

Duty Drawback

Refund of customs duties paid on imported inputs used in processing and exporting cloves.

Interest Subvention (Interest Equalization Scheme)

Provides interest rate subsidy on pre-shipment and post-shipment export credit, improving liquidity for exporters.

RODTEP Scheme

Under Remission of Duties and Taxes on Export Products, exporters receive reimbursement of embedded taxes not refunded under GST.

GST Refund

Exporters are eligible for refund of GST paid on:

• Inputs
• Input services
• IGST paid on exports (if applicable)

ECGC Support

The Export Credit Guarantee Corporation of India (ECGC) offers:

• Credit risk insurance
• Protection against buyer default
• Political and commercial risk coverage

This enables exporters, especially MSMEs, to explore new and risky markets with confidence.

Freight, Insurance, and Banking & RBI Compliances

Freight

• Sea freight is the most common mode due to cost efficiency.
• Air freight is used for small, high-value consignments.

Insurance

Marine cargo insurance is recommended to cover:

• Transit risks
• Theft
• Damage or loss

Banking & RBI Compliance

• Export proceeds must be realized within the time prescribed by RBI
• Compliance with FEMA regulations
• Proper reporting through AD banks
• Submission of shipping documents for negotiation/collection

Nodal Agencies

Key nodal agencies involved include:

• Directorate General of Foreign Trade (DGFT)
• Spices Board of India
• FSSAI
• Customs Department
• RBI & Authorized Dealer Banks
• ECGC

Export Promotion Councils

Spices Board of India

The primary export promotion body for cloves and other spices:

• Quality upgradation programs
• Exporter registration
• Market promotion activities
• Training and certification support

APEDA

Supports exporters where cloves are part of processed food or blended products.

Central and State Government Support & Initiatives

Central Government

• Export incentives (RODTEP, GST refunds)
• Market Access Initiative (MAI)
• Participation in international trade fairs
• Quality and food safety compliance programs

State Governments

• Support for spice parks
• Infrastructure for drying, grading, and storage
• Financial assistance to MSMEs and FPOs

Bottlenecks and Challenges

• Limited domestic production of cloves
• Price volatility in international markets
• Dependence on imports for re-exports
• Stringent quality and residue norms
• High logistics and compliance costs
• Limited branding of Indian cloves in premium markets

Suggestions for Export Growth of Cloves

1. Increase Domestic Cultivation through farmer incentives and R&D
2. Promote Value Addition such as clove oil, oleoresins, and extracts
3. Strengthen Quality Certification (ASTA, ISO, Organic)
4. Develop Export Clusters and spice parks
5. Improve Market Intelligence and branding
6. Encourage Contract Farming with exporters
7. Faster Disbursement of Export Incentives

Conclusion

The export of cloves from India holds strong potential due to growing global demand for natural spices, health products, and essential oils. While India’s domestic production is limited, its strength lies in processing expertise, quality control, and global trade connectivity.

With sustained policy support, improved cultivation practices, value addition, and market development efforts, India can significantly enhance its position in the global clove trade and ensure better returns for farmers and exporters alike.