The monsoon has affected the sentiments of nutmeg and mace market here as both domestic and overseas buyers have slowed down purchase of the spices. According to leading stockists, buyers are shunning the market on account of poor quality of the spices, which were hit by fungus during the recent rains.
According to the stockists at Kalady in Kerala’s Ernakulam district, low quality nutmeg is pouring into the market. Hence, there are limited orders from upcountry markets.
“Exporters have withdrawn from the market as fungus infection is a serious concern in the overseas market,” one of the stockists said.
To add to the woe, parcel booking of the spices to Delhi had been stopped since September 5 by the railways and it is learnt that this would continue till September 25.
A trader said this has affected the business very badly as 65 per cent of the domestic supply is routed through the Delhi market.
The slowdown in the movement of the spices to north Indian markets has put the local market in a bearish mode. Price of red mace has dropped to Rs 380-390 a kg from Rs 450 a few weeks back.
Price of unshelled nutmeg dropped to Rs 210-230 from Rs 270. The drop in the price is mainly due to lack of demand as poor quality of the fresh crop has forced the buyers to withdraw from the market.
Second-phase of the production is in full swing in the central districts of Kerala and the latest estimates from the growing areas indicate a sharp increase in production.
During the initial days of harvesting, 20-30 per cent drop in production was estimated. But recent trend indicates a recoup in the production of nutmeg.
As there are lower price tags now, the inflow of fresh crop to terminal markets has been slowed down, traders said. Farmers are stocking the crop for better price realisation during off-season that begins by November-December.
