Recent Price Hike Could Break the Consolidation in Nutmeg

Nutmeg prices are gearing up for an increase, and many traders have their eyes on the post - Shradh (In India, "Shradh" is a 16-day period in the Hindu calendar. It usually falls during the lunar month of Bhadrapada i.e. September-October according to the Hindu calendar.) Business insiders are already hinting at a potential rise in demand once the Shradh period wraps up, which typically slows purchasing activities. Right now, nutmeg prices are holding steady at USD 7,02 to USD 7,08 per kg after a recent bump of USD 0,24 to USD 0,30 per kg. But, despite the rise, trading has been relatively sluggish.

Vishnu Gupta, a well-known trader from Kochi Mandi, mentioned that big stockists had pushed the price of nutmeg up more than expected, fearing a surge in supply. However, the shortage in arrivals hasn’t justified the price increase, which caused a bit of a market slowdown. As a result;

• nutmeg without peel has softened by USD 0,12 to USD 6,72 to USD 6,84 per kg,
• nutmeg with peel has dropped by USD 0,12 to USD 3,30 to USD 3,48 per kg.

Demand Set to Pick Up as Shradh Ends

Gupta also pointed out that demand for nutmeg typically slows down during Shraddha, much like other commodities. But now that Shraddha is coming to an end, we’re expecting sales to pick up soon. Interestingly, thanks to comparatively lower prices, nutmeg exports have surged in the first quarter of the current financial year.

According to data from the Spices Board, India exported 1,256.10 tonnes of nutmeg and mace worth USD 747,36 million in the first three months of 2024-25. For comparison, during the same period last year, India exported 930.03 tonnes, earning USD 685,68 million. That’s a 35% jump in quantity, though the increase in revenue is only around 9%.

Conclusion: Traders are Depended on Exporters

Looking ahead, traders believe we might see a slight increase in nutmeg demand as prices begin to climb. However, how much of a boost the market gets will largely depend on the actions of exporters. Their activity could determine whether we see a minor bump or a major leap in prices over the coming months.





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