Supply crunch of Nutmeg , Mace

Supply crunch of Nutmeg, Mace

Demand Hike

·       India is a major producer of spices like Nutmeg & Mace.

·       Public awareness increases in people about these two products, like it’s use in indigenous medicine, several drugs, cosmetics, and various food products.

·       Nutmeg used in food and beverages industry, used in the preparation of meat products, soups, sauces, baked foods, confectioneries, puddings, seasoning of meat and vegetables, to flavor milk dishes and punches.

·       Mace is sold either whole or as a ground spice and is used in savory dishes. It is used to flavor milk-based sauces and processed meats such as sausages. Soups, pickles and ketchup, pickles and chutneys are also seasoned with mace.

·        Mace oil possesses almost identical "physicochemical" and "organoleptic" properties as nutmeg oil.

·       Changes in lifestyles also being a big reason in rising in demand, which estimates the rise in demand for these two products to 5-10 %

 What steps they take to make more supply

·       They rise the cultivation area to 11,207 hectares to 16,400 hectares.

·       They try to increase their supply from 1300 tonne to 1500 tonne

Reasons why supply decreases

·       For cultivation of these products we need a specific environment.

·       These are developed in river banks, as it requires a deep, well-drained loamy, sandy soil. The temperature should be 20 -30 degrees C and rainfall  between 1,500-2500mm

·       It is only developed in some parts in India like Kerala, Karnataka, Andaman, and the Nicobar Islands.

·       Most important thing is it needs 2-3 years of time.

·       Half of the plants are male and don’t bear fruit.

Supply crunch

·       World production of nutmeg is about 25000 tonne a year. mace production is about 3000 tonnes.

·       Indonesia and Grenada dominated the production like 75% and 20%

Conclusion

·       Supply crunch of any product gives it’s competitors a large scope to catch the market and it’s a big loss of that company also.


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