Arrivals pull down nutmeg, mace tags

Prices of nutmeg and mace have plummeted here on account of increased seasonal arrivals at Kalady, the major market of the spice in the country. Price of nutmeg (with shell) has dropped to Rs 80-90 a kg from Rs 100-110 a month back.

Red mace prices too have dipped by a huge margin of Rs 100 to Rs 325. A leading trader of Kalady said that the yellow mace crop is currently not available owing to the arrival of the fresh crop. Price of nutmeg (without shell) has dropped to Rs 150-160 a kg, down from Rs 180-190 few weeks back.

Traders say the increased seasonal supply of the spice has caused prices to plummet. Moreover, with harvesting expected to be in full swing till the next month prices should continue to be low. Prices are expected to increase only by August when harvesting comes to a halt.

It is estimated that total production would dropped by 30-35 per cent in the current season. Average yearly production of nutmeg is around 400 tonne. Market sources also said the carry over stock would not be large in the current year.

Although the crop has been delayed by two months this time 3-4 tonne of nutmeg (with shell) is reaching the Kalady market on a daily basis. Four-five tonne of the spice without shell and 1 tonne of mace is also being traded daily.

A trader said that the early monsoon had affected the processing of the harvest and the initial crop was of poor quality due to fungal infection. But the crop hitting the market in the past week is of the quality variety.

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Rubber prices fall 6.36%

Tracking global markets domestic natural rubber has registered huge fall in prices. The benchmark RSS-4 grade shed Rs 5-7 a kg or 6.36 per cent within a few hours to touch Rs 103 over its Monday's close of Rs 110.

It, however, closed the day at Rs 104-105. The market was closed on Tuesday on account of the day-long strike called by the Left parties.

The sharp fall in the RSS-4 grade sent the market into a tizzy. Prices of other rubber grades had not been quoted. On June 2, the market had crashed to the level of Rs 100, but closed at Rs 105. A sudden fall in Tocom futures pushed down prices today.

A trader said there had not been much business on account of the confusion over the future movement of prices.

Tocom futures had shed Rs 7 a kg in June contract and plummeted to Rs 123 (¥309). For the last few days price of RSS-3 grade had been hovering around Rs 130.