Nutmeg Passing Through a Recession Sales are expected to remain further sluggish for time being

There is a possibility of a slight recession in nutmeg in the coming times. A businessman based in Koni Mandi, Kerala, has expressed this fear. He said that the nutmeg price has decreased due to the arrival of the new crop and the buying of domestic buyers in the market remains comparatively weak. With the onset of monsoon season, the sales are expected to be further sluggish.

Nutmeg may further slow down due to sluggish buying in the local wholesale grocery market. It remained stable at the previous level of $8,51/8,77 per kg. Recently, there was a bearishness of $0,06-0,10 in it. Traders said that the market sentiment is getting affected due to the commencement of the new nutmeg crop in Kerala.

However, Konni-based trader Vishnu Gupta said that at present, nutmeg without peel has slowed down by $ 0,12-0,26 to $8,12/8,38 per kg due to a reduction in the buying of domestic buyers. The goods including shells also declined by $0,06-0,13 to $3,68/ 3,80 per kg.

However, the situation of the new crop is expected to clear only by the coming July or August. According to farmers and traders, this time also the nutmeg mace crop may be comparatively weak.

Mr. Gupta said that the Meteorological Department had officially announced the onset of monsoon in Kerala last Sunday. Since this announcement of the department, the weather in Kochi has remained clear so far. Although before this, for several days in the area, It had been raining consistently. He further said that sooner or later, the monsoon has to come. With the onset of monsoon, the buying by exporters along with the domestic customers will decrease further.

According to the traders, the nutmeg exporters in major domestic markets region are sporadic. Due to a lack of buying by exporters, as well as local traders market remained weaker than normal. 

Experts state that non-shelled goods will not go below $7,74 per kg in spot markets. Therefore, whatever fear of recession is seen in the coming time, it would remain in a limited range. 

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