Nutmeg prices surge on supply shortage

A heavy shortage in the supply of fresh crop in nutmeg and mace market has mounted pressure on the price line taking the price of best quality mace to Rs 510-540 per kg. Price of shelled nutmeg increased to Rs 170 and that of un-shelled nutmeg increased to a range of Rs 250-270.

A heavy shortfall in the initial crop of nutmeg, locally known as Makarakkaya, has caused to enthuse the market further, said leading stockists of Kalady, near here.

The early crop comes to market normally in January, but this time half the normal crop has come to the market, this actually caused a shortage for quality nutmeg and mace. As the price escalated growers are busy with plucking nutmeg even before proper ripening of the crop. This affected the quality of the new crop, said the stockists. K A Stephen, a leading trader said that the initial harvesting is active in growing areas and more quantity is expected to reach the terminal market.

So there might be a softening of prices in the coming weeks. He also said that local demand especially from north India is rather weak which may also cause a drop in prices. There is resistance from the buyers at very high price tags. So the bull run will not exist from long as supply will be enhanced soon.