Weather sends nutmeg on bull run

Serious supply crunch coupled with a rise in demand have helped start a bull phase in nutmeg and mace market. Price of nutmeg has appreciated Rs 20-40 per kg on an average and best quality un-shelled nutmeg quoted Rs 230-240, a kg in local markets. Shelled nutmeg is tagged in a range of Rs 130-140. Best quality mace is fetching a price of Rs 430-450 a kg thanks to better upcountry demand.

As the harvesting season has ended, market sources expect a serious supply crunch in the coming months, which is common during the off-season. According to farmers from eastern parts of Ernakulam district in Kerala, there had been a 20-30 per cent downfall in production this time due to erratic weather condition and shortage of rain.

This helped keep the price at a higher level even during the peak harvesting time. But the prices had depreciated later owing to the low offtake from north India during Diwali. So the stocking of spice by the growers made the current shortage in supply and hence the latest appreciation in prices.

In the nutmeg and mace market this is a common phenomenon as supply is upset after November, after the harvest. Till the next crop season which begins by May, the trade in the spice is being carried out with the stock with farmers and stockists. The stocking is heavily dependent on weather conditions as dry condition is essential for ensuring the quality of the product.

Fungus infection is a common threat to nutmeg retaining its good quality. So the availability of best quality nutmeg and mace will be short during the off-season.