Nutmeg Growers Are Faring Well In the Indian Market
Nutmeg growers are enjoying a good price for the spice amidst improved domestic and international demands. The market went towards a bullish mode amidst increased demand for the spice ahead of the Diwali festival. Since then, with good demand for the product from overseas markets, the price is remaining firm.
Market Sentiment Â
Indian nutmeg is in steady demand from China and West Asian countries. With the easing of Covid-19 restrictions, the product is being purchased heavily in these countries, and domestic purchase is also high because of the immunity property the seeds carry.
According to the market experts, the demand for nutmeg from India will continue in the coming months, and it is likely to prove beneficial for the traders and farmers of the crop.
Experts of the field believe the prices will stay firm because of the good demand while the overall production of the crop is less compared to the last few years.
The consecutive floods during the last two years in Kerala and climate changes have reduced the production by 30 percent last year, which was 10,000 tons only. Kerala is the major producer of the spice, and the low production from the state has affected the overall yield of nutmeg in India.
Furthermore, the COVID-19 induced lockdown has also affected the decrease in the production of nutmeg. Monsoon being the peak harvesting time for the Indian nutmeg, which goes up to August, witnessed labor shortage this year due to the lockdown imposed for the pandemic. This has resulted in decay and damage of the harvest, affecting the production of nutmeg on a large scale.
As the result of decreased production and higher demand, the price of nutmeg will stay firm in the market.
PriceÂ
As per market news, the price for both with and without shell has increased.
Nutmeg Whole With Shell
The price of nutmeg whole with shell stayed steady since last month and then witnessed a price hike on the day the market closed for the Diwali festival on November 3. Since then, the price has remained steady for the spice.
PredictionÂ
With the lockdown restrictions being eased around the world, the demand for nutmeg will continue to rise. It is not only used in food, but pharmaceutical companies and the perfume industry extensively use it.
As more people continue to use the spice for its healing and immunity-boosting properties across the world, the higher demand for it will be seen. People are also reviving from the economic slump. With Christmas and New Year’s coming up, the cosmetic and perfume industries are again reviving; thus, they will also start purchasing the spice. The international market for nutmeg is expected to improve hence the overall price of the crop.
According to market analysts, India’s nutmeg production currently stands at 7,500 tons, out of which the domestic demand will consume 3,500 tons. The rest of 3,000 tons will be exported or will be used as a carryover stock.
The increased demand for nutmeg has also increased the price of Sri Lankan and Indonesian crops. Therefore, it is expected that Indian production will continue to fetch a good price in the domestic and international markets in the coming days.
Market Sentiment Â
Indian nutmeg is in steady demand from China and West Asian countries. With the easing of Covid-19 restrictions, the product is being purchased heavily in these countries, and domestic purchase is also high because of the immunity property the seeds carry.
According to the market experts, the demand for nutmeg from India will continue in the coming months, and it is likely to prove beneficial for the traders and farmers of the crop.
Experts of the field believe the prices will stay firm because of the good demand while the overall production of the crop is less compared to the last few years.
The consecutive floods during the last two years in Kerala and climate changes have reduced the production by 30 percent last year, which was 10,000 tons only. Kerala is the major producer of the spice, and the low production from the state has affected the overall yield of nutmeg in India.
Furthermore, the COVID-19 induced lockdown has also affected the decrease in the production of nutmeg. Monsoon being the peak harvesting time for the Indian nutmeg, which goes up to August, witnessed labor shortage this year due to the lockdown imposed for the pandemic. This has resulted in decay and damage of the harvest, affecting the production of nutmeg on a large scale.
As the result of decreased production and higher demand, the price of nutmeg will stay firm in the market.
PriceÂ
As per market news, the price for both with and without shell has increased.
Nutmeg Whole With Shell
The price of nutmeg whole with shell stayed steady since last month and then witnessed a price hike on the day the market closed for the Diwali festival on November 3. Since then, the price has remained steady for the spice.
PredictionÂ
With the lockdown restrictions being eased around the world, the demand for nutmeg will continue to rise. It is not only used in food, but pharmaceutical companies and the perfume industry extensively use it.
As more people continue to use the spice for its healing and immunity-boosting properties across the world, the higher demand for it will be seen. People are also reviving from the economic slump. With Christmas and New Year’s coming up, the cosmetic and perfume industries are again reviving; thus, they will also start purchasing the spice. The international market for nutmeg is expected to improve hence the overall price of the crop.
According to market analysts, India’s nutmeg production currently stands at 7,500 tons, out of which the domestic demand will consume 3,500 tons. The rest of 3,000 tons will be exported or will be used as a carryover stock.
The increased demand for nutmeg has also increased the price of Sri Lankan and Indonesian crops. Therefore, it is expected that Indian production will continue to fetch a good price in the domestic and international markets in the coming days.