Recent Price Surge

In Kochi, the price of nutmeg has seen a modest increase due to a rise in sales. Trade sources indicate that if this trend continues, the price of this essential grocery commodity may climb further. Currently, nutmeg prices remain stable in the local wholesale market, providing a sense of reassurance. This stability is attributed to sluggish buying by stockists at the elevated prices. Recently, nutmeg prices rose, but subsequent sales slowed, resulting in a steady price level.

Market Fluctuations and Trader Insights

According to the market veteran, a Kochi-based trader, peeled nutmeg prices have increased. In tandem, nutmeg with the peel has also risen. Another trader noted that despite a delay in the new nutmeg crop, which usually leads to a decrease in prices due to increased supply, prices remained stable due to prolonged inactivity among exporters. However, recent domestic and slight export activities have driven the price increase. India, Kerala and Tamil Nadu are the primary producers of nutmeg. Notable production areas in Kerala include Thrissur, Ernakulam, and Kodathur. In Tamil Nadu, Kanyakumari and Tirunelveli districts are key nutmeg producers. This regional production is crucial for meeting both domestic and international demand.

Global Supply and Export Market

• On the international stage, Indonesia is the largest exporter of nutmeg. During the last season, Indonesia exported nutmeg worth $13.70 million.
• India follows as the second-largest exporter, with exports valued at $2.680 million.

Other significant exporters are:

• Vietnam ($2.241 million),
• the Netherlands ($1.880 million),
• Sri Lanka ($1.40 million).

European countries are the primary importers of nutmeg, with Germany, the USA, the Netherlands, Vietnam, China, the UAE, the UK, and France also being significant importers. According to the Spices Board, in April 2024, India exported 376.13 tonnes of nutmeg. This is a significant increase compared to April 2023, when 182.90 tonnes were exported.

Future Price Trends

Traders believe that if the current sales support continues, the wholesale price of nutmeg may rise further. However, if sales support wanes, prices are expected to stabilize. This situation presents an essential consideration for exporters, who must stay informed about market trends to optimize their strategies.

The recent rise in nutmeg prices in Kochi reflects market conditions driven by increased sales and limited exporter activity. For exporters, understanding these trends is crucial for capitalizing on potential opportunities. With Kerala and Tamil Nadu being significant production hubs and international demand, particularly from European countries, remaining strong, the market outlook for nutmeg appears promising.