Nutmeg is primarily cultivated in Kerala and Karnataka. It flourishes in warm, humid tropical climates with fertile, well-drained soils. The kernel and mace of the fruit both undergo steam distillation or CO2 extraction to produce warm, spicy essential oils. They are used in flavourings, confectionery, aromatherapy, perfumery, and pharmaceuticals. The nutmeg season in India has concluded with low yields due to heavy rainfall.

Due to the limited supply prices for whole nuts, chips, mace and powders have increased. While there is steady domestic demand, buyers are being selective and focusing on quality. Production has increased in Sri Lanka, but due to low-yields the volumes are not enough to offset the supply gaps. Steady exports are arriving from Indonesia but buyers remain cautious due to shorter harvests, firm pricing and quality concerns. The uncertain supply from global players is expected to result in firm prices for the Indian variety.