Delhi sealing rattles mace, nutmeg mart

The sealing of unauthorised commercial establishments in New Delhi has severely hit the domestic spices markets "� especially, demand for nutmeg and mace "� as the action has slowed down the upcountry demand.

Traders in Kalady said there were absolutely no orders from the north Indian markets, with business having come to a standstill in several parts of the national capital.

The sharp drop in offtake has clearly reflected on the price movement of nutmeg and mace. Prices of nutmeg and mace have dropped by around 5-10 per cent during the last couple of weeks.

Best quality mace is now quoting at Rs 400 a kg, while it was hovering around Rs 450 two weeks ago. Likewise, prices of nutmeg (without shell) have dropped to Rs 180-190 a kg from Rs 200 a kg level. However, prices of nutmeg (with shell) are moving in the Rs 100-110 a kg range.

A leading nutmeg trader in Kalady said there were no enquiries from the Delhi market for the last five-six days. "Normally, the nutmeg and mace market becomes upbeat after Diwali as winter is about to set in, and also, the harvesting season in Kerala comes to an end by the end of October. These two factors usually push the price line up," he said.

But contrary to the trend, prices have actually declined over the last two weeks.

Some traders said the harvesting season was at its fag end now, and stock position in the market was rather low. So, they said with the issue of sealing in Delhi settling down, they expected the market to revive shortly.

A section of traders expects a good rally in prices by next month, as the crop season completely ends by the end of November.

They said the global prices of nutmeg and mace had increased and this would slow down imports.

Their viewpoint and expectation of a rally by next month are corroborated by recent reports, according to which, Sri Lanka is quoting Rs 230-240 a kg for nutmeg (without shell) and Rs 490 a kg for mace.

Indonesia, one of the major producers of nutmeg and mace, is also quoting higher tags currently. Growers and stockists expect a rally similar to one witnessed in December 2004, when mace had peaked to Rs 600 and nutmeg (without shell) to Rs 300.