A fall in the production of nutmeg in the 2009-10 season has affected the supply, causing a swelling of prices since December. According to the latest estimates of growers and traders, there has been a fall of at least 20 per cent in production this time compared with the last season.
There are two crop seasons for nutmeg. The first begins by April–May and ends by August, the main season. The next is December-January.
In 2008-09, production was 3,200 tonnes. The extra-hot summer of 2009 had hit the production and so did a weak winter in December–January. Output is estimated to be 2,500-2,600 tonnes only.
This pushed up the prices of nutmeg and mace (the flower) to record highs. The price of best-quality mace increased to Rs 750–800 a kg, up by 49 per cent from the Rs 500-540 quoted on February 24 last year. A week before, the local market quoted a price range of Rs 650-700, but the severe shortage for the spice caused the price line to touch the new peak level. The price of shelled nutmeg on Wednesday was quoted at Rs 230 a kg against Rs 170 a year earlier; unshelled nutmeg at Rs 380 against Rs 270.
The shooting up of prices is due to shortage of the spice not only in India but also in the other major producing countries of Indonesia and Sri Lanka.
Traders said the sharp rise in prices had also affected demand: bulk purchases are low, compared to the earlier season. The price increase also hit export in January and February. In April–December, 2,850 tonnes valued at Rs 77.9 crore were exported as against 1,415 tonnes valued at Rs 39.6 crore in the corresponding period last year. Data is not available for January and February, but traders say export flow dwindled substantially after December.
The current hot climate, say growers, is a problem, as watering and a moderate climate are essential for a good crop. This time, February was quite hot. So growers expect a fall in production, which means a supply problem in the next season, too (the new crop enters the market from the last week of April). Hence, prices are expected to rise further, especially of high-quality mace.
