High carryover stock hits Nutmeg, mace prices

Nutmeg (without shell) rate dips to Rs 180-185/ kg from Rs 300 last year

Higher carryover stock, coupled with poor offtake from north India, has made the nutmeg and mace market dull, keeping the priceline almost static at lower levels. This is contrary to general market expectations.

Nutmeg (without shell) is now quoting a price tag of Rs 180-185 a kg, while during the same period last year, the market could fetch as high as Rs 300 a kg, on an average.

Although it being off season, at present, production of nutmeg and mace is very low, there is a steady flow of supplies to the terminal markets from high carryover stocks. Now both nutmeg and mace are available in plenty, especially in markets like Kalady.

During the same time last season, both the commodities were in short supply largely because of stocking.

The average price of nutmeg (with shell) has dropped to Rs 100-110 a kg and mace (yellow) is quoting at Rs 400 a kg.

However, traders said red mace is not available and so, its average price increased to Rs 420-450 a kg.

Prominent city trader K A Stephen said during the last season supplies to markets had dwindled by around 40-50 per cent on account of stocking the product in a major way. Growers and stockists, expecting a much higher price tag like last year, did not release the harvest during the season.

But the huge carryover stock has now made the market dull, with the domestic demand currently rather low, he added.

Market experts said the nutmeg from Indonesia is now available at a lower price tag, and this is keeping exporters away from the local markets. There are enquiries for the Indian product from overseas traders, but they are reluctant to place orders owing to higher prices in India, they added.

Growers in the Kalady region said the output might be delayed during the next season, as heavy rainfall during the flowering time had affected the crop badly. Market sources expect lower production in the next season. Normally plucking of nutmeg starts by March, but this time season will begin only by May.

Stephen said the first lot of nutmeg, popularly known as 'Madhurakkaya', is still not available in the markets, which indicates delay in crop season. He said the present indications from the growing areas suggest that there might be a rise in the price levels during the next season.