In India, cloves grow in Kerala, Tamil Nadu, and Karnataka. They flourish in warm, humid climates with volcanic or rich loamy soils. Oil is extracted from clove buds through steam distillation.

The oil produced is rich in eugenol, and widely used in dentistry, analgesic preparations, perfumery, flavourings, incense, and pharmaceuticals. The global market for clove oil is expected to remain steady. There are stable volumes being produced in major clove markets such as Madagascar, Zanzibar, and Indonesia. Though, the output in Indonesia is facing declining quality and reduced yields.

Despite sufficient stock levels globally, prices are high because farmers are holding onto inventory, anticipating stronger demand and better pricing. Sri Lanka stands as an exception, with strong local and export demand with limited supply, driving prices upward. Overall, there is soft demand for clove bud oil and fresh arrivals are limited as well. Both factors have managed to prevent a sharp decline in oil price.