DAVANGERE: Missing out on the bumper price opportunity that arecanut commands in markets currently is something that growers in Karnataka will chew on for a long time. The traders who have kept their stock dry are now reaping the price dividends. Not anticipating the rise in demand, most farmers had already sold their crop.
On Friday, a quintal of Rashi arecanut fetched Rs 65,099 in Honnali, Rs 65,390 in Holalkere and Rs 66,669 at Tumcos market in Channagiri. This is the highest price arecanut has hit this season.
The price may still go north and then stabilise at Rs 50,000 per quintal, say traders at Bheemasamudra, the largest arecanut market in Karnataka.
The standing crop (without husk) is being quoted around Rs 7,500 per quintal, and traders are rushing to plantations to buy it then and there. Low yield and consequent scarcity of produce are the main triggers for the surge in price this season.
Fruit rot and yellow leaf disease have blighted the arecanut crop in Shivamogga, Channagiri and other regular growing areas in the state.
Arecanut trade in the state largely depends on markets in Bheemasamudra, Channagiri, Shivamogga and Sirsi. Pan masala companies from North India buy arecanut from these markets.
Every year around this time, areca from Davanagere and Chitradurga, reach the markets. This season, due to excess rain, nut processing has not yet started in these areas.
With the IMD forecasting more rain in this region, the demand-and-supply situation has sharpened. Stagnation of water in many arecanut plantations has also played its part in decreased yield.
BT Siddesh, a trader from Bheemasamudra, told TNIE that low yield is the key reason for price increase. He said that some traders are hoarding to sell at a higher price. The price may still climb up to as high as Rs 80,000 per quintal and then stabilise at Rs 50,000, he said.
Gadigudal Manjunath, a trader from Davanagere, said that very few farmers have stock left with them. He said that the fresh yield is likely to be less as farmers are not plucking and processing the crop, due to heavy rains continuing in the region.
He, however, said if the import ban on arecanut continues, the prices will stabilise at higher rates, and the situation is just like that of the zooming prices of gold.
Krishnamurthy, a farmer from Dodda Siddavvanahalli, said, “I am happy with the current trend in prices. But we have already sold our produce and cannot reap any big gains. Now I am concentrating on stocking the future crops so that I too can get a good price.”
The officials at Central Arecanut and Cocoa Marketing and Processing Co-operative Limited (CAMPCO) cited a shortage of produce and hoarding by big traders as reasons for the surge in prices. They, however, added that this volatile situation will not continue for long and will change soon.
