The Hindu : Karnataka News : `Explore new market for white arecanut'

Online edition of India's National Newspaper
Sunday, Jul 04, 2004

Karnataka

Karnataka

`Explore new market for white arecanut'

By Our Staff Correspondent

MANGALORE, JULY 3. The price of white arecanut has remained stagnant in the State for the fifth year this year.

Though the Government is considering a proposal to provide minimum support price for arecanut, it may only act as a temporary relief. The price may go up if the authorities focus on exploiting the use of arecanut, experts say.

The price of white arecanut in the country is determined in the Mangalore market. The price will be decided during auction by the South Kanara Agriculturists' Cooperative Marketing Society (SKACMS). The price hovered between Rs. 35 and Rs. 80 a kg during 2000-03. This year, it is Rs. 70 a kg. The average price this year is Rs. 50 a kg.

The president of the All-India Arecanut Growers' Association (AIAGA), Manchi Srinivasa Achar, told The Hindu that the minimum support price would not benefit growers. It would only provide a temporary relief to growers. Though white arecanut was used in making "pan", the demand for the produce had not increased. There was a need to explore new market for white arecanut. It could be used in ayurvedic medicines, as a mouth freshener, and in beverages and chewing gums.

He said importance had not been given to research and development. If the produce was exploited commercially, it would help stabilise the price of white arecanut. Mr. Achar said import of arecanut was not the main reason for stagnation of price. "The import factor is negligible". Though the production had increased, the consumption did not. During the British administration, there was no restriction on the import of arecanut. The British imposed duty on growers with an intention to reduce arecanut consumption. It was challenged in the Supreme Court by the South Canara and Coorg Planters' Association, which won the case in 1944.

After Independence, the Government imposed duty on imports. It applied to arecanut also. In 1950, the average price of white arecanut was Rs. 2 a kg. It went up in the subsequent years and in 1972, the price came down to Rs. four a kg. The next year, Central Arecanut and Cocoa Marketing and Processing Cooperative Ltd. (CAMPCO) of the Karnataka and Kerala governments came into being. It started procuring arecanut at Rs. eight a kg, he said.

Mr. Achar said between 1975 and 1999, the price of white arecanut varied between Rs. eight and Rs. 175 a kg. The growers got an average of Rs. 110 a kg in 1999. The Government should focus on the reduction of various taxes on arecanut. The taxes prevented the growth of the market. While cooperative societies paid the taxes, private buyers could evade them. This imbalance should be rectified, he added.

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