Northern demand spurs nutmeg, mace prices

Increased demand from north Indian stockists has pushed up prices of nutmeg and mace.

Today, the best-quality mace was selling at Rs 370-375 a kg at Kalady. Exactly a month ago, when the harvesting season began, the price had plummeted to Rs 325-340.

While nutmeg with shell was quoting at Rs 90-95 a kg "� up by Rs 10-15, the variety of nutmeg without shell was selling at Rs 160 a kg, up by Rs 10.

Dealers in Kalady said supplies to terminal markets were rather weak due to a fall in production in the current season. Even in the midst of harvesting, the daily business volume at Kalady stands at hardly 3-4 tonne.

According to the latest estimates of both farmers and traders, total production will plunge 30-35 per cent in this season. Heavy as well as widespread rainfalls in the state have affected harvesting and also processing of the product, which, in turn, resulted in short supply "� at least for the time being.

In some parts of Ernakulam district, crop has been severely damaged by rains.

The lower supplies, coupled with an increase in the upcountry demand, have made the market temporarily bullish.

An exporter said the incessant rainfall had badly hit the quality of the product too and, hence, the availability of export-quality stuff was very limited. He said the exportable nutmeg (without shell) was available at a much higher price range of Rs 190-195.

Incidentally, the global market is not favouring India at present, as Indonesia and Sri Lanka are offering lower price tags for the same crop. On the other hand, imports from these countries (to India) are on the rise because of the 6-10 per cent difference between the prices of these countries and India.

Further, a farmer said production had been delayed this time on account of heavy rainfall during the flowering season "� October-November. The rather untimely rains had also caused a serious damage to the crop, he added.

According to a Kalady dealer, both the mace and nutmeg markets will be bullish by the end of September owing to a shortfall in output.

On a steep decline in supply, prices of mace had peaked to Rs 500-550 a kg by the end of last year, and the same is expected this year as well, he added.

In anticipation of such a tough time, the north Indian dealers have become rather active stocking the product from the Kalady market, and this is considered the main reason for the appreciation in prices during the current week.