White Areca Prices Gain On Short Supply

Mangalore: Production loss in white arecanut is gradually pushing the market up. Though both the old and new stocks of white arecanut are fetching considerably good prices during the season, enough stocks are not available to meet the demand.

According to an estimate, the production loss of white arecanut is around 40 per cent this season. However, growers contest this by saying that the production loss is above 60 per cent.

Fruit-rot disease

The main reason for the production loss is onslaught of fruit-rot disease in arecanut plantations during monsoon. Continuous rainfall during monsoon prevented a majority of farmers from spraying the fungicide - copper sulphate solution - at regular intervals.

The major arecanut cooperatives are of the opinion that shortage of stock in the market has led to increase in the prices of the commodity.

Though the arrival of the old stocks of white arecanut is rare in the market, it has fetched Rs 98-100 a kg during the last three weeks, whenever it came to the market. On some occasions, new stocks got around Rs 92 a kg. However, last season, the price was in the range of Rs 95 a kg for old stocks and Rs 85 a kg for new stocks.

To a query whether the production loss will lead to import of the commodity, S.R. Rangamurthy, President of Central Arecanut and Cocoa Marketing and Processing Cooperative (Campco) Ltd, told Business Line that the Union Government has initiated steps allowing only one port in the country - New Mangalore Port - to import the commodity. In such a situation, it was not easy to import arecanut.

He assured the growers that they would get good prices for their commodity during the year.

Holding back stocks

Sridhar Bhide, President of the Mangalore Agriculturists’ Sahakari Sangha (MASS), reiterated his stand that growers should bring the commodity to the market at regular intervals. Some of the growers were holding back the commodity anticipating higher price for it. If they sell the commodity at regular intervals, it would help stabilise the market, he said.

M. Srinivasa Achar, President of the All-India Areca Growers’ Association, said that those growers who can afford to hold back the commodity were not selling it now. But most of growers with small holdings, who have suffered production losses due to fruit-rot disease, don’t have anything left to sell in the present market conditions.

On the demand for white arecanut in the northern India, a source in the market, who did not want to be identified, said that it was mainly because of the problem in importing arecanut from Myanmar due to unrest in that country. This was affecting the clandestine import of the commodity. This was one of the reasons for the demand for white arecanut in that market, the source said.