Thursday, 13 February 2014 00:06
-
- {{hitsCtrl.values.hits}}
The Hindu Business Line: India has begun to import nutmeg from Sri Lanka following a production shortfall.
A poor crop last season has led to a shortage and consequent rise in prices, according to market sources. As a result, dealers are importing from Sri Lanka, said an importer who struck some deals with traders in Colombo last week. He told Business Line that against the domestic price of INR 725 a kg, nutmeg rate in Sri Lanka was INR 675 a kg.
He said that mace production in India is also short of the demand. Against demand of 1,500 tons, mace production is only 800 tons, the trader said.
According to market sources, total indigenous production of nutmeg was 11,000 tons. From this nearly 8,000 tons of nutmeg with shell could be recovered. The mace recovered will come to only 10% i.e., 800 tons. The next crop is due in June-July. Some growers in growing areas of Kottayam and Pathanamthitta Districts in Kerala said the crop was poor last year due to unfavourable weather conditions.
India and Indonesia are the two main producers of the spice. Others are Sri Lanka and Grenada, which produce a small quantity. Principal importers are the European Union, the US, Japan and India. Singapore and the Netherlands are major re-exporters. Also, the Gulf is a major market.
During April-September 2013, India exported 2,700 tons of nutmeg and mace worth INR 155.85 crore at a unit value of INR 577.21 a kg. Against this, exports during the same period the previous year were 1,225 tons valued at INR 90.86 crore at the unit value of INR 741.73 a kg. Indian output of nutmeg with shell is estimated at around 11,000 tons and when the outer meat is removed it would come to about 8,000 tons.
Domestic demand for mace is estimated at around 1,500 tons a year and the production this year estimated at little over 50% of the requirement, traders said. Meanwhile, one section of the trade said the requirement of nutmeg has ranged between 13,000 tons (without shell) and 15,000 tons, of late, given its growing use in indigenous medicines/drugs, cosmetics and in various food products. The demand includes exports which range between 1,500 and 3,000 tons depending upon availability.
