Stretched rubber farmers may now turn to Nutmeg

KOCHI: Will the persistent low price of natural rubber prompt more farmers in Kerala to take up cultivation of nutmeg? The farming of nutmeg, which is fetching good prices, has steadily grown even as the acreage of pepper and cardamom—the two major spices of the state—has declined.

That nutmeg prices have not shown much fluctuation like other spices, may also work in favour of this spice largely cultivated in Kerala and in some areas in Tamil Nadu and Karnataka.

Nutmeg prices have seen a rise in the last few years, driven by a good export demand, though majority of the over 12,000-tonne output is consumed locally.

In the last 15 months, rubber prices dropped as much as 40% and the situation doesn’t look rosy in the coming months with international prices continuing to fall. Rubber farmers are seriously looking at other crops and nutmeg seems to be attracting them the most.

Josekutty Antony, proprietor of Thulumpanmakal Rubber Nursery, said some rubber growers are setting apart a part of their estates for other crops like nutmeg. “Nutmeg is difficult to cultivate in hilly areas as it requires good irrigation.

Apart from this, they do not have to spend much on the tree,” he said. The nutmeg acreage increased 14% in the last five years and is around 19,000 hectares. The de-shelled nutmeg is fetching around Rs 500 per kg while the nutmeg mace (found inside the seed) sells at Rs 750-800 per kg.

“The delay in monsoon has led to improved quality of nutmeg. The spice is harvested during the rainy season. We are expecting better prices for the spice given the better quality,” said PD Zachariah, president of All Kerala Nutmeg Growers’ Association.

Nutmeg exports in 2013-14 went up 38% in volumes to touch 4,450 tonne. The value increased 16% to Rs 263 crore. The export crossed 4,000 tonne for the first time because of a shortage in Indonesia, a major producer. But this year, Indonesia has recouped the production.

“Our export has been good in the initial months this year. It has slipped a bit in the recent times because of higher export from Indonesia, which doesn’t have as much local consumption as India. Still our prices are good,” said Dipak Parikh, partner of Kanu Krishna Corporation, a leading exporter.

According to Parikh, Indonesian farmers use better harvesting and storage techniques that result in better quality of the spice.