Rising Tides: Anticipating the Surge in Nutmeg Demand
The demand for nutmeg is about to experience a significant upswing, thanks to recent developments and the forthcoming Bakrid festivities. According to informed industry sources, as the monsoon season sets in, there has been a noticeable uptick in nutmeg arrivals in key producing states. However, sluggish purchasing patterns have momentarily slowed down this vital grocery commodity. Yet, with Bakrid on the horizon, a surge in nutmeg sales is expected shortly.
The local wholesale market for nutmeg in Kerala's Kochi wholesale market still needs to be more robust, with Karnataka and Tamil Nadu witnessing weaker trading activities. The state's nutmeg prices have held steady, despite a week-long delay in reaching last year's levels. The monsoon season began with a similar deceleration, leading traders to voice their concerns. Moreover, South India, including Kerala, has experienced a rainfall deficit of 35-40 percent compared to the norm during the current season, contributing to a modest rise in nutmeg arrivals. However, the real surge in arrivals is yet to materialize.
In the fiscal year 2022-23, the export of nutmeg reached 3,446 tonnes, valued at $269,873 million, as per the data provided by the Spices Board. While the export quantity experienced a 4 percent decline compared to the previous year, there was a marginal 2 percent increase in revenue generation. Traders foresee potential pricing pressure as nutmeg arrivals surge in the coming days. However, this surge in supply is expected to be met with an increase in demand from exporters.
The convergence of the monsoon season and the upcoming Bakrid festivities holds the promise of a revitalized nutmeg industry. While challenges such as slow buying patterns and rainfall deficiencies persist, traders stand poised to capitalize on the projected rise in nutmeg sales.
The local wholesale market for nutmeg in Kerala's Kochi wholesale market still needs to be more robust, with Karnataka and Tamil Nadu witnessing weaker trading activities. The state's nutmeg prices have held steady, despite a week-long delay in reaching last year's levels. The monsoon season began with a similar deceleration, leading traders to voice their concerns. Moreover, South India, including Kerala, has experienced a rainfall deficit of 35-40 percent compared to the norm during the current season, contributing to a modest rise in nutmeg arrivals. However, the real surge in arrivals is yet to materialize.
Expectations of a decrease in production
Due to the slowdown in business activities and increased arrivals, nutmeg prices without peel recently declined. Additionally, there are apprehensions about the forthcoming nutmeg crop, with expectations of a 25 percent decrease in production compared to the previous season. This potential shortfall could impact the market as increased arrivals continue to unfold.In the fiscal year 2022-23, the export of nutmeg reached 3,446 tonnes, valued at $269,873 million, as per the data provided by the Spices Board. While the export quantity experienced a 4 percent decline compared to the previous year, there was a marginal 2 percent increase in revenue generation. Traders foresee potential pricing pressure as nutmeg arrivals surge in the coming days. However, this surge in supply is expected to be met with an increase in demand from exporters.
The convergence of the monsoon season and the upcoming Bakrid festivities holds the promise of a revitalized nutmeg industry. While challenges such as slow buying patterns and rainfall deficiencies persist, traders stand poised to capitalize on the projected rise in nutmeg sales.