| This is in a situation when contrary to the expectations of traders and growers, prices have dropped by Rs 10-25 a kg during the last three weeks. |
| Traders in Kalady said though the market had seen a short supply for the last one month, as feared, a poor offtake by upcountry markets caused the downturn. |
| Best quality mace (yellow), which was quoted at Rs 470-475 a kg a month ago, is now fetching Rs 20-25 less at Rs 450 a kg, and the price of the red variety, too, declined by Rs 20 to Rs 440 a kg today. |
| Nutmeg (without shell), which was priced in the Rs 190-210 range on September 8, is selling at Rs 180-190 a kg. Similarly, the shell variety of nutmeg is quoted at Rs 90-110 a kg today, down by Rs 10-25 from the September 8 level. |
| Traders attribute the current bearish trend in the market to a comparatively lower festival demand this year. They, however, hope demand will improve and push prices up by the next week on the occasion of Dewali, as the festival traditionally remains the best time for nutmeg and mace. |
| Terminal markets have been in short supplies because a large number of suppliers have been stocking their products in anticipation of a northward movement in prices in November, with the harvesting season almost drawing to a close. |
| Leading traders said during the current season, total supply to the local markets had been almost half the levels seen in the last season "� a fact which too points to a rise in the propensity to stock. |
| According to an estimate, production was to fall by 20 per cent in the current season, leading to an appreciation in prices that actually happened during the first two weeks of September. |
| But the rainfall for the last few weeks has caused a slight improvement in production and has also helped the current season linger till October-end. |
| However, market sources expect a short supply by November and an almost certain spike in prices during the off season. |
Top Section
Explore Business Standard