Kottayam: The arecanut market is stagnating because of the poor arrivals though the season has already set in. Usually the arrival picks up during the cropping season, from January to May.
But in spite of that, even after the commencement of cropping, farmers are unwilling to release the stock. According to Campco sources, the current situation would take a better turn from April 1 when the VAT would be only 2 per cent as against the existing 3 per cent.
In all probability, the farmers might be waiting to release the new arecanut after March, when prices are expected to be bullish.
Demand from North Indian manufacturers has also indicated negative trends as the shortage of material has reduced the off-take.
The prevailing prices for the new and old arecanuts are Rs 70-79 a kg and Rs 75-86 a kg respectively.
But in spite of that, even after the commencement of cropping, farmers are unwilling to release the stock. According to Campco sources, the current situation would take a better turn from April 1 when the VAT would be only 2 per cent as against the existing 3 per cent.
In all probability, the farmers might be waiting to release the new arecanut after March, when prices are expected to be bullish.
Demand from North Indian manufacturers has also indicated negative trends as the shortage of material has reduced the off-take.
The prevailing prices for the new and old arecanuts are Rs 70-79 a kg and Rs 75-86 a kg respectively.
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