Small cigarette factories in Indonesia are being overwhelmed by an increase in clove prices, which have reached Rp120,000 per kg, according to a story in the Jakarta Post.
The executive director of the Indonesian Cigarette Industries Society Forum, Heri Susianto, said on Monday that small cigarette factories could afford to pay only Rp70,000 per kg; so they were incurring losses and some were facing bankruptcy.
The increase in clove prices has been caused by a fall in production precipitated by heavy rain in the regions where clove plantations are located.
Demand for cloves by cigarette factories is stable.