MANGALORE: The price of white arecanut in the district has gone up considerably in the past 15 days, bringing some respite to arecanut growers. However, a majority of them are not benefiting as they sold the produce by June.

White arecanut (new) now fetches an average of Rs. 80 a kg in the Mangalore market compared with Rs. 40 a kg in the past five years. Manchi Srinivasa Achar, president, All-India Areca Growers' Association, told The Hindu this is the first time the price of white arecanut has increased in the past five years. He said the price is likely to remain at Rs. 80 a kg for some time as there is shortage in arrivals. The price reached a maximum of Rs. 175 a kg in 1999. Since 2000, the price of white arecanut (new) has ruled at Rs. 40 a kg, he added.

``The market will be remain steady and will not decline,'' he said. Only 10 per cent of arecanut growers in the district may have stocks as a majority of them sold the produce by June, he said.

An official of the Mangalore Agriculturists' Souharda Sahakari (MASS) said the highest price paid by MASS this season for arecanut was Rs. 87 a kg. A few private traders at Puttur purchased the commodity at rates of up to Rs. 90 a kg. The price may remain at Rs. 85 a kg in the near future because of shortage of stock, the official said.

He said growers should not expect the price to increase further. If they fail to release the produce to the market, it may give scope for more imports of arecanut as there is shortage.

According to sources in Central Arecanut and Cocoa Marketing and Processing Cooperative Limited (CAMPCO), carry forward stocks of arecanut (such as the "pathora'' and "sippe gotu'' grades) in the market have been cleared and imports have declined. Gujarat used to be the main market for white arecanut, known as "Mangalore chali" in north India.

But, these days, there is demand from Bihar and Uttar Pradesh. Traders in those States have shown preference for arecanut from CAMPCO and this may be one reason why the price has gone up, sources said.

S.R. Satishchandra, president, South Kanara Agriculturists' Cooperative Marketing Society, said the demand for white arecanut in Gujarat has gone up this year. The economy of that State has improved due to an increase in foreign direct investment.

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