THOOTHUKUDI: Citing rise in input cost, manufacturers increased the price of the crunchy Kovilpatti kadalamittai (groundnut candy) by as much as 40%.
Speaking to reporters , secretary of kadalaimittai manufacturers and traders association Kannan said the price of a 80-kg bag of groundnuts has increased to Rs 14,000 from Rs 8,000. Hence, the price of one kg of groundnut candy, which was sold between Rs 160 and Rs 180, has been increased to Rs 220 per kg for wholesale dealers from January 28. The retail price will be Rs 260, he said, adding that it is a 40 % increase.
A few years ago, Kovilpatti Kadalamittai was granted Geological Indication (GI) tag which spurred demand from across the country and many nations.
Kovilpatti Kadalaimittai has a unique taste due to the quality of the groundnut that is exclusive to the black-soil region comprising Aruppukottai, Kazhugumalai, Sankarankovil, Sathankulam, and Alangudi, and the traditional manufacturing method using ‘vellam’ (jaggery).
According to the association, there are nearly 120 kadalaimittai manufacturers in Kovilpatti, offering employment to nearly 15,000 people directly and indirectly. The cluster churns out at least 40,000 kg of groundnut candies on an average daily, and a sizable quantity is exported to several countries including Singapore, Malaysia, United Kingdom, USA, Bahrain, Qatar and Kuwait.
Speaking to TNIE, Kannan said this is the first time the price of groundnuts has hit Rs 14000/kg mark. “The supply gradually declined as the cultivation area had reduced, while few had reduced export, he said.”
The association said the government must take steps to increase the area of groundnut cultivation. A manufacturer requires at least 25,000 kg of raw ground nuts, the association said. Besides, Kannan appealed to the union ministry of commerce to restrict export of raw groundnuts to control the price.
Further, the association said several manufacturers based outside Kovilpatti were using fake GI tags and urged the state government to take action.