Nutmeg, mace soar on low output hopes

Nutmeg and mace prices may rise in anticipation of low production in the current season.

According to Kalady traders, the initial harvesting trend indicated a considerable drop in the production. Supplies in the current month are very low compared with the last season. The anticipated fall in production has triggered a rise in the price of mace (red) to Rs 450 a kg, which was Rs 400-420 three days back.

A Kalady trader said that the preliminary indications from various production centres show that production may fall 30-35 per cent. Harvesting will be in full swing by June-July and growers are enthusiastic about the initial production.

Average annual production of nutmeg is around 2,500 tonne but this year it is expected to be below 1,800 tonne.

Traders said that the incessant rainfall in the flowering season, October "� December last year, had hit the crop hard.

They added that the prices might fall in the first phase of harvesting and it would rise again due to low production.

But this has created some confusion in the local markets and the upcountry demand especially from north India is very weak. Due to this the prices had fallen and mace (red) was quoted at Rs 400 a kg.

Nutmeg (without shell) was steady at Rs 180 a kg and nutmeg (with shell) was at Rs 90 "�100 for the last one week.Interestingly, best quality mace (yellow) was not available indicating a low carryover stock.

Due to lower production in 2005 (drop by around 40 per cent) price had spurt to an all time high level (in September-December) and best quality mace (yellow) was priced at Rs 500-550 a Kg. Price of nutmeg (without shell) was at Rs 280.

According to the Spices Board estimates total nutmeg production in 2003-04 was 2,550 tonne and the total production was 2552 tonne a year after that.'

A trader said that the future prices would be decided based on the arrival in the first fortnight of June.