Nutmeg, mace prices rise on tight supply

Nutmeg and mace prices have shot up sharply because of tight supply of the commodity in the market. The price of best quality shelled nutmeg has increased to Rs 180 a kg from Rs 140-150 a kg a month back. Prices of unshelled nutmeg also increased by Rs 50 to Rs 320 a kg.

Mace prices have soared to Rs 470 a kg and the price of best quality flower has crossed the Rs 600-a-kg mark. Moreover, the availability is very limited, especially in Kalady, the leading market of nutmeg and mace in south India.

The production season of the spice is generally over by the last week of October. Normally, prices are low during the harvesting season; therefore, growers stock the crop for selling it in the off season (November–February). But the fairly good prices quoted during the harvesting season this time forced the farmers to sell off the crop early. Therefore, a major chunk of the crop has already been sold, resulting in the current shortage of the commodity in the local market.

It is also estimated that there was a marginal fall in the production this time, which is estimated in the range of 2,300-2,500 tonnes.

Moreover, leading Kalady-based stockists told Business Standard that demand for the commodity has also been unusually good from northern India even after the Diwali season.