Nutmeg is primarily cultivated in the southern states of India, particularly Kerala, Karnataka, and Tamil Nadu. This tropical evergreen tree thrives in warm, humid climates with well-drained, fertile soils. It requires consistent rainfall and shade during its early growth stages. Nutmeg oil is extracted through steam distillation and is rich in compounds like myristicin and pinene. Major nutmeg growing areas are experiencing supply issues. There is lower than expected crop arrival in Indonesia. There are also quality concerns about the product and prices are witnessing an upward trend. In Sri Lanka demand has been on the rise since November. Carry-over stock is of low quality and fresh stock is limited.

Thus, price has increased in the region. Harvesting season has ended in India and due to high moisture content low quality material has been produced. Demand for the product remains high and with the supply challenges being faced, price is expected to remain elevated in the coming months.