Nutmeg, mace pick up steam as demand rises

After 3-4 weeks of weak demand, nutmeg and mace markets have picked up this week as there are enquiries from the local and overseas markets.

Prices have appreciated by Rs 10-20 a kg on an average beginning from Monday. Best quality shelled nutmeg now fetches Rs 140 a kg while the average produce has a price tag of Rs 130.

Compared to last week, nutmeg price has risen by Rs 20 a kg. Unshelled nutmeg being traded at Kalady, a major market for the spice in south India, at a price tag of Rs 230. The average price of mace has risen to Rs 400, up Rs 10-20 a kg over last week’s closing price while best quality red mace is having a price tag of Rs 430 a kg.

Rather long holidays in the North during puja and Diwali have affected the demand for nutmeg and mace which slowed down the market for last couple of weeks.

According to leading traders, the scene changed this week as there is pretty good demand from north Indian markets. The tight supply of spices also caused the appreciation in prices as there is a heavy stocking of the fresh harvest for the off-season.

Though the harvest season is active now, supply of the spice to major markets is rather poor currently. Traders said this was due to the strong stocking tendency of growers for fetching better prices during offseason, beginning from next month.

The drop in production this season has also badly hit output this year as erratic rainfall and strong winds had destroyed a large number of nutmeg trees. Re-planting activity is rather very poor in the case of nutmeg compared to other spices like black pepper and cardamom.

Top traders told Business Standard the market is poised for further appreciation in prices as the harvest season is at its fag end now. There is a good demand for the spice abroad, especially in West Asia and this might bring in a price rise by next week.

Meanwhile, the export of nutmeg had dropped to 595 tonne valued at Rs 15.26 crore during the first half of the present financial year from 715 tonnes, valued at Rs 18.26 crore in the same period of last fiscal year.