Nutmeg to become pricier on deficient monsoon

The nutmeg crop in the country could be affected, leading to a consequent rise in prices, if the south-west monsoon doesn’t make up for its deficiency last month.

Given the weather conditions prevailing so far, nutmeg production in the country is estimated to be the normal 12,000 tonnes.

“But, any deficiency in the monsoon this month will impact the current crop bringing down the output by 1,000 tonnes,” Anand Kishore, President, India Pepper and Spices Trade Association (IPSTA), told Business Line. In view of deficient rain coupled with the humid weather conditions, a bullish sentiment has already built up in the market, he said. Investors, stockists, farmers and dealers are all are bullish, he said.

From the 12,000 tonnes of wet nutmeg, the actual weight of nutmeg with mace will be 8,500 tonnes if the 30 per cent weight of the shell is deducted. Of this, the weight of the mace will be about 850 tonnes (10 per cent). Thus, 7,500 tonnes of nutmeg will be available after processing.

The domestic nutmeg demand is estimated at 4,000 tonnes a year and exports are in the range of 3,000-3,500 tonnes. The carry-forward stock is around 500 tonnes, he said. At the same time the domestic requirement of mace is estimated at 1,500 tonnes against the production of 850 tonnes. The short fall in supply is met by imports from Sri Lanka and Indonesia, he said.

Domestic demand According to Anand, domestic demand is growing annually, albeit marginally, as its use by the consuming industry is on the rise. Both nutmeg and mace are widely used in spices masalas/powders, confectioneries, medicines and perfumes while whole mace is used in certain food items. The change in food habits is, in turn, pushing up demand. “There is growth in the annual demand but while there isn't a corresponding rise in the production,” he said.The current farm gate price for wet nutmeg is ₹200 a kg, while for dried material it ranges between ₹275 and ₹285.

Nutmeg without shell is traded in the range of ₹475 and ₹500. Price of medium grade mace is at ₹800 a kg. Red flower is traded between ₹950 and ₹1,000 while superior yellow flower fetches ₹1,200-50 a kg, he said. According to the Spices Board, Kerala almost produces all the nutmeg in the country. Nutmeg is cultivated on 17,545 hectares and the southern State, where the spice is grown as a mixed crop, produces 11,911 tonnes. Karnataka and Andaman and Nicobar Islands make up the rest of the production.

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