Nutmeg trees are tropical evergreens that require hot, humid climates with abundant rainfall. They grow best in fertile, well drained sandy loam soils rich in organic matter. In India, nutmeg cultivation is concentrated in Kerala, Tamil Nadu, and parts of Karnataka There is steady domestic demand for the oil, though it is insufficient to absorb the incoming volumes. This has resulted in a disparity between demand and supply. Harvest has commenced on time due to the arrival of rainfall and fresh material has arrived in the market. Though the yield is lower than average.

Price has decreased slightly to stabilise the market in the short term.