Tridge summary
The article highlights the significant increase in nutmeg prices in Kerala, India, ahead of Diwali, due to the combined effects of climate change, floods, and monsoon labor shortages causing a nearly 30% drop in production compared to the previous year. These challenges, along with COVID-19 impacts on markets and transportation, have led to a 30% reduction in exports, with the Gulf countries being the primary export destination. Despite these difficulties, farmers remain hopeful of higher prices. The article also mentions the important role of nutmeg in both the domestic and international markets, where it is used for its medicinal, confectionery, and perfume industry applications, as well as in the pharmaceutical sector. The optimism for a potential recovery in exports as restrictions ease is counterbalanced by concerns over future production due to recent heavy rains in Kerala.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.
Original content
Ahead of the Diwali festive season, the price of nutmeg has escalated to Rs600 and Rs650 per kg. This is mostly because climate change and the two consecutive floods in Kerala have impacted nutmeg production over the last year. The state has also been witnessing unprecedented rains in the last two months which has further impacted the production of nutmeg. The farmers however are hopeful of even better price realisation. Given the rising demand from major consuming centres, they are now anticipating at least a Rs15-25 per kg rise before Diwali. Nutmeg is the main ingredient in the spices used for the confectionery, and the perfume industry, besides being known for its medicinal values. According to industry sources, though there have been lower arrivals of the crop in the market, there are some stocks available with farmers both in the primary markets and consuming centres. Nutmeg production with shell and mace (red membrane) put together is 10,000 tonnes. Out of which, 7,500 ...
Source: Indoasiancommodities
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