The fresh nutmeg crop in Kerala is facing poor demand as many buyers complained of a dip in quality. The delayed arrival of monsoon played spoilsport as processing and drying of the spice became difficult with the late incessant rain. This led to fungus infection in the crop.
According to leading traders, buyers from Delhi and other cities across the country complained about the poor quality. Buyers are keeping aloof of the market as the infection is being detected. However, the prices are still ruling high due to the lower seasonal output.
Reports from the nutmeg-growing areas in the central part of Kerala indicate that the total output would be reduced by 30 to 40 per cent this time as the flowering of trees has been heavily damaged due to incessant rainfall in Nov-Dec.
India’s average annual production is in the range of 2,700-3,000 tonnes. The prices of the best-quality mace has been steady between Rs 400 and Rs 410 a kg. Shelled nutmeg is ruling between Rs 125-130 a kg and un-shelled nutmeg is quoted in the range of Rs 225-235.
There have been heavy arrivals to terminal markets such as Kalady but the supply has slowed down, thanks to heavy rain. Though the harvesting season is at its peak now, farmers are stocking the crop, expecting higher value realisation after September.
The demand for the spice from medicinal users is increasing as a price hike is projected after the season. But, a major chunk of the buyers, especially from north India, are complaining about the poor crop quality. The season will end by August-September and since there is lower output this time, the market might be in a bull phase after September.
Meanwhile, exports of nutmeg and mace faced a serious setback in the first quarter of the current year. As per the latest estimate of the Spices Board, a 55 per cent drop was registered in exports at 120 tonnes as against 265 tonnes in the corresponding quarter of the last financial year.
